Reinstated South Sudan Central Bank Governor Moves to Shake Up Fiscal Policy

Johnny Ohisa Damian was on Monday reinstated to the position after President Kiir lost faith in Dr James Alic Garang's stewardship of South Sudan's ravaged economy

In a significant shift aimed at restoring stability to South Sudan’s financial sector, President Salva Kiir Mayardit has reinstated Johnny Ohisa Damian as Governor of the Bank of South Sudan, replacing Dr James Alic Garang.

This change in leadership marks a new chapter for the Central Bank, as Ohisa wastes no time in implementing bold policies to address the country's ongoing fiscal challenges.

During a consultative meeting with managing directors of commercial banks on December 12, 2024, Governor Ohisa outlined his immediate plans for stabilizing the banking sector and restoring public confidence.

"The public's lack of trust in our banking system is a critical issue," Ohisa acknowledged in his opening remarks.

"This crisis is not just about liquidity—it's about rebuilding the relationship between the banks and the people. Trust is the foundation upon which we will build a stable economy."

One of the first actions taken by the newly reinstated Governor was the decision to lift the cash withdrawal limit of SSP 10 million(about $77,000) from individual accounts, a restriction that had previously hindered financial transactions.

"We are removing the withdrawal cap to give our people more freedom with their funds. We must ensure that accessing their own money is not a barrier to economic participation," said Ohisa.

"It is a step toward rebuilding trust and showing the public that the banking system is here to serve them."

In another major move, Ohisa announced that the Bank of South Sudan would encourage commercial banks to offer interest on savings accounts, a measure designed to incentivize customers to deposit funds into the banking system rather than hoarding cash.

"Encouraging savings is essential to the financial health of our nation," he explained.

"By introducing interest rates, we will make it more attractive for people to save in the banks, which in turn will help to stabilize the currency and drive economic growth."

The meeting also emphasized the importance of collaboration between the Central Bank and commercial banks to address the challenges facing the sector.

Both parties agreed to work together to tackle liquidity issues and implement policies aimed at boosting public confidence.

"We are not just looking to solve the current crisis; we are building a sustainable financial system," said Ohisa.

"We are committed to ensuring that South Sudan has a robust, efficient, and trustworthy banking system that can serve the needs of all its citizens."

The Governor's vision for the Bank of South Sudan is one of transformation, with an emphasis on stability, efficiency, and public trust.

He also reiterated the Central Bank’s responsibility to maintain price stability and ensure a well-functioning financial system that contributes to the broader goals of economic recovery.

"Our job is not just about policy; it’s about people," Ohisa stated.

"We need to ensure that our financial system works for everyone—from the largest businesses to the most vulnerable citizens."

As South Sudan continues to face complex economic challenges, Ohisa’s leadership is seen as a key opportunity to drive reforms and restore public faith in the country’s financial institutions.

With these decisive steps, he has set a clear agenda for rebuilding the banking sector and strengthening the nation’s economy.