South Sudan government has denied printing more local currency to cover the budget shortage due to the ongoing war, reports APA.
Reports claimed that the central bank is secretly printing huge amounts of money to help cover wartime budget deficits. The undersecretary at the Ministry of Finance and Economic Planning Salvatore Garang Mabiordit has denied that the Central Bank has been printing or has any plans to print money, asserting that such a move would require parliamentary approval.
Mabiordit told local radio that there are no such plans by the bank or the government requiring printing more money.
If there is a plan to print money, it would require the approval of the national legislative assembly and this means there will have to be a debate. Printing is connected to the economy of the country and the lives of the people. Therefore it can never be done secretly,” he explained.
South Sudanese pound has witnessed its unprecedented lowest level since the eruption of the war in the country in December 2013.
The exchange rate in the black market has reached 7.2 pounds to the dollar while the official rate at the banks remained 3.16.
South Sudan oil revenues have been sharply dropped after the war as the oil production decreased due to the shutting down of many oilfields in Unity and Upper Nile states.
South Sudan rivals have repeatedly failed to achieve any breakthrough in the peace talks taken place in Addis Ababa.
The UN Security council is likely to impose sanctions on south Sudan as the leaders of the warring parties have exceeded the deadline set by the mediators on March 5.