South Sudan’s Monetary Development since Independence Analysis

The document provides an extensive analysis of South Sudan’s monetary development from 2011 to 2026, highlighting significant nominal expansion in money supply and central bank liabilities. It notes repeated exchange rate depreciation, increased fiscal dominance, shallow financial intermediation, and ongoing currency substitution. Broad money (M2) surged from SSP 4,987 million to SSP 5,506,838 million, reflecting a dramatic 1,104-fold increase. The official exchange rate depreciated by approximately 156,233% during this period. The balance sheet of the Bank of South Sudan has become a structural issue, with net foreign assets declining significantly. The banking sector remains focused on trade and construction, sidelining vital sectors like agriculture and mining. In order to reform the economy, a coordinated approach including monetary, fiscal, and institutional measures is necessary.

South Sudan’s Monetary Development since Independence Analysis