What is the real reason behind South Sudan’s decision to change its currency?

South Sudan President Salva Kiir holds South Sudan Pound notes in Juba on July 18, 2011.

Photo credit: File | AFP

What you need to know:

  • There is always suspicion that every policy decision South Sudan makes is modelled on, if not entirely copied, from another country within East African neighbourhood.
  • This is not to say that learning and borrowing from others is a bad thing.
  • Essentially, South Sudan is broke. Its economy continues to be nearly 100 per cent import-oriented.
  • What set this avalanche of economic collapse in motion is the civil war that is raging since 2013.

Part of the challenge of being a new country is that whatever policy action such a country pursues is likely to be scrutinised from the point of view of whether the said policy is an original idea or copied from the neighbours and for what reasons.

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