Author Topic: South Sudan and North Sudan: New Currencies  (Read 22029 times)

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Offline <k>

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South Sudan and North Sudan: New Currencies
« on: June 10, 2011, 04:25:21 PM »
Source: United Nations Mission in Sudan - Pound for Pound

Pound for Pound

10th June 2011

A brand new currency will rank high among the trappings of sovereignty that the Republic of South Sudan is expected to acquire after the formal proclamation of its independence in early July.

The National Congress Party and the Sudan People’s Liberation Movement (SPLM) reached an agreement in March giving the south a green light to issue its own national currency after last January’s Southern Sudan referendum on self-determination produced a landslide vote in favour of secession from the rest of the country.
 
The South Sudan pound will feature the visage of the late SPLM founder John Garang de Mabior on the front of the bank note. A variety of well-known landmarks like the White Nile River and illustrations depicting some of the new country’s natural resources will adorn the back.
 
The currency will be issued in six denominations ranging from one pound to 100, and four different coins will have values of one, five, 25 and 50 piastres.

Finance and Economic Planning Minister of the Government of Southern Sudan (GoSS) David Deng Athorbei told "In Sudan" that printing the bank notes has already commenced in a foreign country that he declined to disclose on grounds that its identity was “confidential”.
 
But press reports of a 29 March news briefing he addressed in Juba quoted the minister as saying that printing is taking place somewhere in Europe. Initial deliveries of the bank notes are expected after Southern Sudan officially becomes an independent country on 9 July.
 
Introduction of the new currency will gradually bring to an end the use of today’s Sudanese pound in the south that was created under the terms of the 2005 Comprehensive Peace Agreement (CPA).

During the Kenyan-mediated peace talks, SPLM negotiators insisted on replacing the Sudanese dinar as one more symbol of the Arabization that successive governments in Khartoum had sought to impose on southern Sudan.

Sudan’s current monetary unit had a value of 2 Sudanese pounds to the U.S. dollar when it began circulating in 2007. Bank of Southern Sudan President Elijah Malok declined to say in advance at what exchange rate the new currency would be fixed when it makes its first appearance later this year. Mr. Athorbei said that the South Sudan pound’s value would be subject to a “managed float” regime under which its exchange rate will be permitted to fluctuate on a daily basis.

The Sudanese pound should be completely phased out in the south by year’s end, while it will be retained in northern Sudan. Awad Abushouk, general manager of the Central Bank of Sudan’s (CBoS) issuance department in Khartoum, denied earlier reports that Khartoum might convert to another currency or revert back to the dinar, in use until 2007.
 
Mr. Abushouk noted that northern and southern finance authorities were discussing means of “resumption”, or compensation for the amount of pounds accumulated at CBoS’ Juba branch, which could be in US dollars or Euros, for instance.
 
While Juba was preparing for its new currency, North Sudan was aiming to issue the “second edition” of the Sudanese pound around July, said the issuance chief, based on CBoS’ forecasts about new currency demand.

While Khartoum would issue no new denominations of banknotes, the one-pound note might be changed into coin, said Mr. Abushouk. It has a fast rate of deterioration, becoming unusable within six months of circulation, which makes it a rather costly commodity.
« Last Edit: June 10, 2011, 05:45:43 PM by coffeetime »

Offline <k>

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Re: South Sudan and North Sudan: New Currencies
« Reply #1 on: July 07, 2011, 02:40:08 AM »
World Bank sees South Sudan currency ready in six months

http://www.trust.org/alertnet/news/wbank-sees-south-sudan-currency-ready-in-six-months/

NAIROBI, July 6 (Reuters) - South Sudan should have a new currency in about six months after gaining independence from the north this week, a senior World Bank official said on Wednesday.

The impoverished region becomes the world's newest nation on Saturday following a referendum in January agreed under a 2005 peace deal that ended decades of civil war with the north.

"The currency is probably a six months' process. Printing it, shipping it, allowing people to convert. There is a central bank governor so the structure is there," Ian Bannon, acting country director for Sudan told a news conference, on his way to Juba to attend independence celebrations.

The key test will be how quickly officials grasp the finer details of implementing economic policies from scratch, he said.

"These are things that people learn by doing. These officials will have to try it and they will make mistakes," Bannon said.

Once celebrations to usher in the new republic are over, officials will soon have to set an exchange rate and craft monetary policies, among other pressing priorities that include diversifying the economy.

Bannon said the government could stimulate sectors such as agriculture in order to cut dependence on oil -- which makes up 98 percent of the state's total revenues -- and create jobs and improve citizens' living standards.

"It can't just be that you have a new flag and a new national anthem. It has to be improvements in their lives," he said.

Lacking in basic infrastructure like roads and telecommunications, the new nation will offer myriad opportunities to private investors, although it will be up to the government to pull them in with friendly policies, Bannon said.

"It is really up to the government to make that environment welcoming. In a country with so little infrastructure, the potential is huge," he said.

"Just about anything you can think of is needed. The question is, will the private sector say, 'Ok, we will come and invest'?"

Online Figleaf

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Re: South Sudan and North Sudan: New Currencies
« Reply #2 on: July 07, 2011, 08:20:51 AM »
Bannon is of course polite. His message is: the country is in the middle ages, no one knows anything about government policy and their only income is from oil. If it will become a kleptocracy, nothing will happen until the next revolution. If they can somehow create political stability and an agricultural surplus, foreign investment may flow in and start to develop the country.

The problem with his reasoning is that more money will be needed than can safely be had from foreign investments and development aid. Real development will come with domestic savings, which needs not only an agricultural surplus and political stability, but also ownership rules, rule of law and minimal corruption. Not very likely for a couple of years at least.

Expect a paper currency with limited demand for it and perhaps some (Chinese-made?) pseudo issues that will never see the country.

Peter
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Offline FosseWay

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Re: South Sudan and North Sudan: New Currencies
« Reply #3 on: July 07, 2011, 09:44:27 AM »
This article on the BBC seems to think the currency is some way off, and that they haven't definitively decided on having a resistance leader on the coins.

Quote
Every new nation likes to make its mark with its currency - it is a time to laud heroes and show off a nation's achievements.

But it will be a while before the South Sudan pound is launched, as designs have not been finalised.

Members of the committee working on the design are said to have suggested that the first chairman of the Sudan Peoples' Liberation Movement (SPLM), the late John Garang, should appear on the currency.

However, it's reported that ordinary people expressed a preference for historical and cultural symbols. Politicians come and go, they said, but the things that truly unite the southern Sudanese people are permanent.

Interesting to note from coffeetime's post above that they're planning on not having a 10 piastre denomination. I came across somewhere else that jumps straight from 5 to 20 or 25, but can't remember where now.

Online Figleaf

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Re: South Sudan and North Sudan: New Currencies
« Reply #4 on: July 07, 2011, 09:54:32 AM »
Interesting to note from coffeetime's post above that they're planning on not having a 10 piastre denomination. I came across somewhere else that jumps straight from 5 to 20 or 25, but can't remember where now.

The first post in this thread, maybe?

Peter
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Offline Bimat

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Re: South Sudan and North Sudan: New Currencies
« Reply #5 on: July 12, 2011, 06:50:30 AM »
South Sudan Says Currency, Printed by De La Rue Plc, Will Arrive July 13
By Matt Richmond - Jul 11, 2011 5:50 PM GMT+0530

South Sudan’s new currency, printed by De La Rue Plc (DLAR), the world’s biggest printer of banknotes, will arrive on July 13, Finance Minister David Deng Athorbei said.

The South Sudan pound will be equal in value to the Sudan pound, Athorbei told reporters today in Juba, the newly independent nation’s capital. The Sudanese pound currently trades at about 2.67 to the dollar, according to the Central Bank of Sudan, while on the parallel market it sells at about 3.3 to the greenback.

The Bank of Southern Sudan, the central bank, will keep any Sudanese pound notes it receives and will start issuing the new currency when withdrawals are made, Athorbei said.

South Sudan became independent on July 9, six years after the end of a two-decade civil war with the north that killed as many as 2 million people. The country of 8 million people now controls about 75 percent of Sudan’s daily production of 490,000 barrels of oil, pumped mainly by China National Petroleum Corp., Malaysia’s Petroliam Nasional Bhd. and India’s Oil & Natural Gas Corp.

To contact the reporter on this story: Matt Richmond in Juba at mrichmond10@bloomberg.net

Source: Bloomberg
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Offline Bimat

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Re: South Sudan and North Sudan: New Currencies
« Reply #6 on: July 12, 2011, 06:54:52 AM »
11 July 2011 Last updated at 15:45 GMT

South Sudan pound to be launched next week

South Sudan, the world's newest country, will launch its currency next week, officials say.

The South Sudan pound will feature the image of the late John Garang, the south's most revered leader, the AP news agency reports.

A 2005 peace deal that Mr Garang signed with Khartoum paved the way for the south's independence on 9 July.

Analysts say the launch of a currency is one of many challenges facing the new East African state.

Finance Minister David Deng Athorbei said plane-loads of the South Sudan pound would arrive in the capital, Juba, on Wednesday and it would be in circulation by Monday, the AFP news agency reports.

Its exchange rate would be fixed one-to-one with the former currency, the Sudanese pound, Mr Athorbei is quoted by AFP as saying.

'First football match'

He said the South Sudan government had battled to pay salaries for June and July.

"This difficulty is related to the fact that the Khartoum government did not deliver us the physical cash," Mr Athorbei said.

The south's independence follows decades of conflict with the north in which some 1.5 million people died.

Saturday's independence ceremony was held at the mausoleum of Mr Garang, who died just months after signing the peace deal with Khartoum.

On Sunday evening, South Sudan played its first football match, in the capital, Juba.

However, the new national team lost 3-1 to Kenyan club side Tusker FC after taking a 1-0 lead.

South Sudan has not yet been accepted as a member of the world football body Fifa and so the match was not officially recorded.

South Sudan is rich in oil, but is one of the least developed countries in the world, where one in seven children dies before the age of five.

Correspondents say keeping both the north and the south stable will be a challenge.

Fears of a new war resurfaced after recent fighting in the border areas of Abyei and South Kordofan, where some 170,000 people have been forced from their homes.

Separate deals - and the withdrawal of rival forces from the border - have calmed tensions.

But the two sides must still decide on issues such as drawing up the new border and how to divide Sudan's debts and oil wealth.

Citizenship is also a key sticking point. A new law passed by the National Assembly in Khartoum has withdrawn Sudanese citizenship from all southerners.

Source: BBC
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Offline Enlil

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Offline <k>

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Re: South Sudan and North Sudan: New Currencies
« Reply #8 on: July 14, 2011, 11:50:45 AM »
Thanks for that, Enlil. Crucial extract:

"The Central Bank leader also displayed the new currency to the media. He announced that there will be six denominations – 1, 5, 10, 25, 50, 100 – but added that lower denominations in the form of coins are still being minted."

So coins are on their way too.

Offline Ukrainii Pyat

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Re: South Sudan and North Sudan: New Currencies
« Reply #9 on: July 14, 2011, 02:50:14 PM »


Ho hum.... :-\
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Online Figleaf

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Re: South Sudan and North Sudan: New Currencies
« Reply #10 on: July 15, 2011, 09:10:14 AM »
In view of the serial number, this one is probably still an example of what it wil look like. I am sure it doesn't fit in your "beauties on banknotes" collection :-*, but it's got what it takes, no?

Peter
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Offline FosseWay

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Re: South Sudan and North Sudan: New Currencies
« Reply #11 on: July 15, 2011, 09:24:14 AM »
It's not exceptional -- in a good or a bad way. I think what lowers it for me is the rather home-computerish font used for the text denomination. I can't put my finger on precisely why I don't like it, but there's something that grates.

Offline chrisild

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Re: South Sudan and North Sudan: New Currencies
« Reply #12 on: July 15, 2011, 11:36:46 AM »
What I find a little spooky about that note is that you have six eyes staring at you. ;D Apart from that, a design that would neither attract nor deter me. have not seen any coin design images so far ...

Christian

Offline Coinsforever

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Re: South Sudan and North Sudan: New Currencies
« Reply #13 on: July 15, 2011, 10:27:50 PM »
Off the topic ...........


New postage stamps have been launched for the new Republic of South Sudan. According to Brigadier General (Rtd) Elijah Biar Kuol, the Director General for Administration and Finance in the Ministry of Telecommunications and Postal Services, 100,000 copies of the stamps have already been distributed to all the states of South Sudan.He said the focus will be in the rural areas where more than 80 percent of the citizens of the Republic of South Sudan live.




Cheers ;D
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Offline Ukrainii Pyat

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Re: South Sudan and North Sudan: New Currencies
« Reply #14 on: July 15, 2011, 10:45:45 PM »
I wonder how long it will be before the president that is depicted on the notes declares himself ruler for life, and then gets overthrown - resulting in new notes having to be printed?  Unfortunately that part of the world has had a poor experience with real democracy.
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