The Central Bank of South Sudan on Tuesday issued a statement warning the public against housing money outside banks and directed them to use existing banking and financial systems in the country to deposit their money.

The bank’s Director for Communications and Public Relations, Majok Nikodemo, indicated that there is going to be measures that will inspire the public and private businesses to start depositing their cash in the banks.

“The Bank of South Sudan is rolling out measures to encourage members of the public and private businesses to use the existing banking and financial institutions for cash deposits,” said Majok.

“Members of public, commercial, and private businesses should refrain from hoarding currency or keeping it outside the banking sector,” he added.

However, the bank’s statement did not provide details of the measures and how it will be carried out or implemented. But it cited that about 80 percent of the currency circulating is not in the banking system.

“Over 80 percent of the currency in circulation sits outside the banking system, which presents a tremendous challenge to the conduct of monetary policy.”

The statement raises red flag of mistrusts from both private businesses and the general public on the banking and financial systems in the country. It also depicts a sense of money laundering and financial mal-practices in both private and public sectors if 80 percent of currency circulating is not cashed in the banking systems.

Nikodemo, as the bank’s public relations officer encourages the use of licensed money platforms to make transactions and payment clearance adding that the bank will enforce law against illegal currency dealers.

“Members of public and small businesses are encouraged to use digital money platforms such as licensed mobile money operators to transact and make payments, [the bank] will be coordinating activities with the law enforcement agencies to identify currency hoarders, their spots, and shall take appropriate measures to discourage such behavior,” said Nikodemo.

The enforcement exercise against the illegal currency dealers will be done by the Juba City Council authorities together with the Central Bank administration, according the bank official.

The central bank earlier last year 2023, announced a new policy authorizing illegal foreign exchange dealers on the streets and black markets in Juba to register with the bank and acquire license so that they can be regulated according to the law.

The new policy was a measure meant to control the selling of foreign currency especially the dollar and to stabilize the local currency South Sudanese pound which has been losing its value against foreign currencies as well as to stabilize fluctuating market prices.