Analyst: New Central Bank policies questionable

An economist and Dean at the University of Juba is proposing tighter restrictions and injecting hard currency into the market as concrete steps towards reviving the economy.  

 

Dr Abraham Kuol Nyuon, the Dean of the College of Social and Economic Studies says the measures announced by the Central Bank last week to discourage borrowing by the government and commercial banks from the Bank of South Sudan will not have a direct impact until the banking sector is restored. 

 

The Bank of South Sudan last week introduced measures to tighten the monetary stance in order to stabilize the depreciating SSP and correct the high inflation rate in the country. 

 

The new policy includes increasing the lending interest rate to 15%; to discourage additional borrowing by government and commercial banks from the central bank. 

Dr Abraham Kuol Nyuon outlined his proposals to Radio Miraya.