ECONOMIC IMPACTS Of “No Cash” IN THE ECONOMY OF SOUTH SUDAN, 2024-2026
DOI:
https://doi.org/10.65150/EP-jefrr/V2E2/2026-05Keywords:
No Cash in the economy, Banks running dry, Low withdrawal limits, Currency hoarding, Currency collapse, Digitalization, Higher denominations of SSP, Impact on the economy, Hyperinflation, Banking liquidity crisis.Abstract
The objective of the paper is to critically analyze economic impacts of ‘No Cash ‘in banks, and the economy with the aim of providing remedies and economic policy advice. The paper uses a combination of approaches including analytical, comparative, evaluative, descriptive, explorative, discussions with staff of the ministries, universities, direct interviews with bank managers, businessmen with accounts in the banks. The data gathered was assessed in terms of withdrawal frequency to see how many times an official and businessmen withdraw their own money from their accounts with the banks. The paper found out that the problem of ‘No Cash in the economy is a result of hoarding money plus outflow of money in the economy. Shortage of physical cash hindered basic transactions for businesses and individuals, disrupted trade and contributed to increased slowdown of the economy. Significant remedies and economic policy advice are crucial. This paper suggest that commercial banks improve mobilization of financial resource techniques by creating credits, lend to small and medium businesses through the use of savings to consolidate financial resources and to gain liquidity capability,.Finally,SSP500 and 1,000 should be reduced to 50 and 100 as the highest banknote and set limits for hoarded money to be remitted back to banks in exchange for new SSP. More research is needed around money outflow and hoarding to tract and quantify the amount or percentage of money kept out of formal banking system.
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Copyright (c) 2026 Abraham Matoc Dhal, Dr. John Garang (Author)
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