Central Bank receives over $300 million from IMF
The Central Bank of South Sudan has received $334 million from the International Monetary Fund (IMF) to help finance its economic recovery programs.
The financial institution announced Tuesday that the money has been allocated under the Special Drawing Rights.
“South Sudan has been allocated $334 million by the International Monetary Fund as part of the general allocation of Special Drawing Rights (SDRs) approved by the IMF Board of Directors on 2nd August 2021. The allocation became effective yesterday Monday 23rd August 2021,” the bank said in a statement shared with the media Tuesday.
IMF’s Special Drawing Rights are supplementary foreign reserve assets defined and maintained by The Fund. They are units of account for the IMF and not a currency per se. However, the SDRs represent a claim to currency held by IMF member countries for which they are exchanged.
The Central Bank welcomed the funding saying it came at a time when the country has embarked on fundamental economic reform initiatives.
“The resources have come when South Sudan is implementing essential economic reforms, including monetary and far-reaching foreign exchange market reforms, which involves refraining from monetary financing of the deficit,” the bank said in the statement.
“Utilization of the new resources will address the budget support and the economic impacts of the COVID-19 pandemic, the balance of payment, and reserves building,” it added.
South Sudan has boasted substantial revenue since prices of oil in the global market picked up after almost a year of erosion catapulted by the coronavirus pandemic.
“Our current economic stabilization efforts have been supported by the significant recovery of oil prices and the two IMF disbursements under the Rapid Credit Facility in November 2020 and March 2021 for combined financing of $225 million,” the bank said Tuesday evening.
“These efforts have made a positive impact by helping the country address the pandemic’s adverse effects, the exchange rate stabilization, declining inflation, and the government’s ability to reduce salary arrears substantially,” it added.
On 30th November 2020, IMF Managing Director Kristalina Georgieva advised the government of South Sudan to utilize funding appropriately so as to establish its own economic development panacea.
The statement came after IMF donated $52 million to the country to help weather the economic impact of the COVID-19 pandemic.