South Sudan's National Caretaker Minister of Finance and Planning, Athian Diing Athian, has called for institutional collaboration and evidence-based policies to address the country's liquidity crisis. He made the remarks during a national policy workshop in Juba, which examined the causes and impact of the liquidity crisis and possible policy and institutional reforms. The workshop brought together government officials, financial-sector stakeholders, and other institutions involved in economic management.
Athian emphasized that addressing the liquidity crisis requires coordinated action between the Ministry of Finance, the Bank of South Sudan, and other stakeholders. He stressed that policies should be based on evidence and economic data, and that no single institution can resolve the liquidity challenges alone. The minister urged all partners to work collaboratively to formulate evidence-based policies that will lead to reforms and economic recovery.
In practice, evidence-based policymaking involves using information on cash circulation, demand for money, financial-sector conditions, and other economic indicators to identify the causes of the liquidity shortage and guide policy responses. This approach will enable policymakers to develop targeted solutions to address the root causes of the crisis. Athian also highlighted the need for stronger digital payment systems to reduce reliance on physical cash.
The caretaker finance minister noted that South Sudan's economy cannot depend solely on physical cash. He advocated for a secure, accessible, and efficient digital payment infrastructure to reduce pressure on cash demand, improve the movement of money across the economy, expand financial inclusion, and make transactions safer and more transparent. This, he believes, will strengthen public confidence in the formal financial system.
Athian also emphasized the need for digital financial services to be accessible to people in both urban and rural areas. This, he said, will help to strengthen public confidence in the formal financial system. The one-day workshop, held at the Bank of South Sudan, was conducted under the theme, "Understanding and Solving Liquidity Crisis: Diagnosis, Policy Options and Institutional Reforms."
The discussions at the workshop are expected to produce policy recommendations aimed at improving cash circulation, strengthening financial institutions, and restoring confidence in South Sudan's financial system. The recommendations will be developed based on the evidence-based approach advocated by Athian. The workshop brought together stakeholders from various sectors, including government officials, financial-sector stakeholders, and other institutions involved in economic management.
The liquidity crisis in South Sudan has significant implications for the country's economy and financial stability. The caretaker finance minister's call for evidence-based policies and institutional collaboration is seen as a step towards addressing the crisis. The outcome of the workshop and the implementation of the policy recommendations will be closely watched by stakeholders, including the general public, businesses, and investors.
Key points
- Athian Diing Athian calls for institutional collaboration and evidence-based policies to address South Sudan's liquidity crisis.
- The caretaker finance minister advocates for stronger digital payment systems to reduce reliance on physical cash.
- The national policy workshop aims to produce policy recommendations to improve cash circulation, strengthen financial institutions, and restore confidence in South Sudan's financial system.
