New 500 pound note will not reduce inflation: economist
South Sudan's new 500 banknote will not reduce inflation in the country, a South Sudanese economist said.
The central bank of South Sudan said the new higher denomination banknote will be introduced soon.
Professor Marial Awou, the Dean of the Faculty of Economics at University of Juba, told Radio Tamazuj on Tuesday that he fears the new policy could worsen the country’s ailing economy.
He explained that the central bank thought that the new higher denomination banknote could reduce the burden of carrying large amounts of paper money while disregarding its negative effect on inflation.
The South Sudanese economics expert said the new 500 banknote was not supposed to be introduced amid soaring inflation in the country.
The East African country is facing an acute economic crisis due to the ongoing civil war.