By Awan Achiek
Money is a current medium of exchange that is generally accepted as legal tender for the payment of goods and services, as well as for the repayment of debts.
Money printing is important to the supply and circulation in a country and the state of a country’s economy. The printing of money can either help to stabilize an economy or wreck it.
In South Sudan, which is an import-dependent economy, the printing of money to finance government spending, including the payment of salary arrears, has serious economic costs for the country.
Increasing the money supply without a corresponding increase in goods and services leads to inflation, a weakening of the local currency, and an increase in the price of goods imported into the country.
Since gaining independence from Sudan in 2011, South Sudan has introduced several new banknotes with higher denominations to combat the rising inflation in the country and the continued depreciation of the South Sudanese pound against the U.S. dollar.
The South Sudanese pound (SSP) was introduced in July 2011, replacing the Sudanese pound. The initial series of banknotes included SSP1, SSP5, SSP10, SSP25, SSP50, and SSP100 banknotes.
In 2016, the Bank of South Sudan replaced the SSP25 note with an SSP20 note to align the currency with standard decimal denominations.
As inflation accelerated, the central bank introduced the SSP 500 banknote in 2018 to meet the growing demand for higher-value currency in daily transactions.
In 2020, the country issued the SSP1,000 note to combat the erosion of the purchasing power of lower denominations.
In 2024, the Bank of South Sudan released redesigned SSP1,000 banknotes that featured updated wording and enhanced security features.
Despite these steps, the inflationary pressures and the depreciation of the currency continue to persist.
In 2025, the Bank of South Sudan reportedly printed 5.2 trillion South Sudanese pounds to address the liquidity shortage and to pay salaries to civil servants and members of the armed forces.
The decision came after remarks from the then governor of the Bank of South Sudan, Dr. Addis Ababa Othow, who told the Finance and Economic Planning Committee of the Transitional National Legislative Assembly in July 2025 that the central bank intended to print more currency to tackle the liquidity crisis and help with salary payments.
Recently, new banknotes have started circulating as the government began addressing the backlog of salary payments owed to civil servants and members of the organized forces.
While printing money might offer some short-term financial relief and allow the government to meet its urgent obligations, economists warn that if this monetary financing isn’t accompanied by a boost in economic productivity and strict fiscal discipline, it could lead to higher inflation, a weaker exchange rate, and an increased cost of living for everyday South Sudanese citizens.
Even with the rollout of new banknotes and the ongoing printing of local currency, these efforts have barely made a dent in the country’s economic crisis or helped stabilize the economy.
For Africa’s youngest nation, relying on money printing to fund government spending poses major risks, especially since South Sudan’s economy is heavily dependent on oil revenues and imports.
When the money supply increases without a matching rise in domestic production, several issues can arise.
First is inflation. When there’s more money floating around but there are not enough goods and services to match, prices start to climb. This means that the purchasing power of citizens takes a hit, as the same amount of money buys fewer goods than before.
Secondly, currency depreciation. Printing too much money can weaken the value of the pound against foreign currencies, leading to a drop in the exchange rate. For instance, as of today, 12 July, 2026, $100 is equivalent to SSP 710. If the pound’s exchange rate against the dollar worsens, imports become pricier.
Thirdly, the high cost of living. As prices for essentials like food, fuel, and medicine rise, households find themselves facing a steeper cost of living. Low-income families often bear the brunt of this, sometimes going days without meals.
Fourthly, inflation erodes the real value of savings, meaning the majority survive from ‘hand to mouth’ with nothing to save. This lack of savings also affects commercial banks, which rely on deposits to lend to businesses. Many banks are currently struggling with cash liquidity because people aren’t saving.
To tackle these issues, cutting back on money printing is essential. This can help control inflation, stabilize the currency, protect household purchasing power, restore investor confidence, and create a foundation for sustainable economic growth.
The governments should focus on financing their spending through better non-oil revenue collection, disciplined budgeting, transparent borrowing, and diversifying the economy instead of resorting to excessive money creation.
Investing in agriculture and manufacturing can help reduce reliance on a single revenue source. By fostering private sector growth through improved infrastructure, better access to finance, and a stable business environment, the government can create jobs and boost the economy’s productive capacity, ultimately generating more tax revenue.
The views expressed here are the writer’s own and do not represent any official position or authority. The views do not reflect the editorial stance of Sudans Post.
