Issuance of a 1000 South Sudanese pound note

Announced Bank of South Sudan On Tuesday, February 4, 2021, a new 1000 Egyptian pound banknote was introduced in a larger denomination in an attempt to alleviate runaway inflation and the permanent decline in the value of the currency, which has eroded the face value of the currency in the recent past.

The South Sudanese pound was introduced on July 18, 2011, replacing the Sudanese pound after it was approved by the National Legislative Assembly prior to Independence Day.

In 2016, the Bank of South Sudan issued a 20 South Sudanese pound banknote to replace the 25 South Sudanese pound banknotes.

Later, coins were introduced into circulation in the form of 10 piastres, 20 piastres, 50 piastres, 1 pound, and 2 pounds. However, these coins are rarely used in nationwide transactions.

The introduction of the 1,000 South Sudanese pound note came after the successful implementation of the 500 South Sudanese pound note in 2018, which the bank said showed them a significant increase in demand for a higher denomination of banknotes.

There are seven different categories (1, 5, 10, 20, 50, 100, 500 pounds).

As the economic crisis intensified, the value of one pound could no longer buy any commodity in the market.

At a press conference in Juba on Tuesday, Central Bank Governor Dier Tong Ngor said a new £1,000 banknote would begin circulating in the market as a means of making transactions more efficient.

“In light of the need to make our currency more usable, we are today introducing the 1,000 South Sudanese pound note into circulation to supplement the existing banknotes, ensuring customer convenience and achieving greater efficiency in currency printing to generate savings, said Tong. “This new, higher-value denomination will only partially restore the dollar value of the 10 South Sudanese pound note in 2011, but it is high enough to significantly reduce the loss of maximum gains and the high transaction costs associated with making high-value purchases in a cash-based economy like South Sudan.”.“

He explained that the bank reviews its mix of denominations from time to time to ensure that the available mix of denominations is in line with macroeconomic conditions and demand.

However, international best practices require central banks to review their currency regimes every five (5) to ten (10) years to ensure that the demand for banknotes is well aligned with economic activity, address weaknesses and challenges associated with managing banknotes and coins in circulation, assess the non-use of a particular series to ensure printing efficiency, and address technological innovations that affect the use of currency.

The central bank argues that the introduction of a new, higher denomination aims to complement existing banknotes, ensure customer convenience, and achieve efficiency in currency printing to generate savings for the country.

The introduction of these high-value banknotes should not be misinterpreted as a departure from central bank policy of encouraging the use of electronic payment methods. While we are actively pursuing financial inclusion by accelerating the transition to electronic payment platforms, we also recognize the importance of cash in our daily transactions. It is undeniable that cash remains “king” and the preferred payment method for the country’s large informal sector. This is why we continue to focus on improvements to the structure, security features, and cash management within the economy,“ Tong said.

It is also noted that the introduction of 1000 South Sudanese pound banknotes will facilitate their transportability, adding that the higher denomination will reduce high transaction costs, increase efficiency in high-value cash transactions, and lower printing and currency management costs, among other things.

Tong repeated what he said:“Introducing 1,000 South Sudanese pound banknotes will not cause inflation – he said it will actually make them more convenient when engaging in high transaction volumes.“

However, people and economists are skeptical about the central bank's decision, arguing that the larger denomination of banknotes cannot withstand market shocks and will automatically lead to hyperinflation.

An anonymous source said, “There will be a lot of money in circulation chasing a few commodities, leading to a state of inflation – it is very dangerous for the country’s economy.”.

The governor said the new banknotes will complement smaller notes such as 5, 10 and 20.

“Our goal is to align the structure of banknotes with the needs of people who use them in their daily transactions. We need banknotes that are convenient, high-quality, secure, and cost-effective. “.

The key features of the new 1000 banknotes include the following:

A prominent characteristic of blind and visually impaired people
Watermark
3D color-changing security tape
The digital value (latent image) disappears
iridescent gold ribbon
Value number line (minor text)
A portrait of Dr. John Garang de Mabior in the dominant red color, and a pair of ostriches appear on the reverse of the banknote.
On the reverse side of the banknote, “Bank of South Sudan” is printed at the top, and the nominal value of the note (in bold) appears horizontally in each corner.

 The new 1000 Sudanese pound banknotes are expected to be in circulation soon.

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Sudan introduces a 1000 pound note