HOW THE SSP 10 MILLION WITHDRAWAL LIMIT WAS THE BEST POLICY
By Philip Alier Panchol
The SSP 10 million withdrawal limit was one of the best policies introduced in South Sudan to improve cash availability and address the country’s ongoing shortage of currency. By controlling large withdrawals, the policy made sure that the limited money in banks could reach more people, protected banks from sudden cash shortages, and strengthened public confidence in the financial system. It was a practical and well-thought-out policy that followed international best practices.
Unfortunately, this policy was reversed by Mr. Johnny Ohisa, who succeeded Dr. James Alic. Removing the withdrawal limit allowed people to take out large sums of money freely, quickly draining bank reserves and worsening the cash shortage. This decision undermined the stability the policy was meant to protect and showed how important it is to have disciplined, professional monetary management.
Dr. James Alic, who introduced the withdrawal limit, also played a key role in securing the independence of the Central Bank, ensuring that decisions were based on professional and economic judgment rather than political pressure. He also introduced the National Payment System, which created the foundation for electronic banking in South Sudan. Digital payments help reduce dependence on cash, increase transparency, improve security, and give more people access to financial services, especially in areas where banks are scarce.
Despite this progress, the digital payment system has not been widely adopted because it has received little support from authorities and financial institutions. Limited public awareness, poor infrastructure, and few incentives for banks and mobile operators have slowed its growth. Strong leadership and proper promotion are needed to make digital payments a real alternative to cash and improve financial inclusion.
Dr. Alic also promoted access to banking for small businesses, public servants, and low-income families. Financial inclusion helps people save money, invest in businesses, and take part in the economy, which is essential for long-term growth in South Sudan.
The current Governor, Hon. Yeni Samuel, has decades of experience in the Central Bank and can bring some stability. However, fully restoring strong, growth-focused monetary policies requires the expertise and vision that Dr. Alic has proven over the years. His international training, IMF experience, and academic background give him the skills to guide South Sudan’s economy toward stability and growth.
To restore monetary discipline, strengthen banks, promote digital payments, and expand financial inclusion, the policies and vision established by Dr. Alic remain essential. His experience and leadership continue to offer the best path for South Sudan to achieve economic stability, resilience, and sustainable growth.
AUTHOR’S NOTE:-
Philip Alier Panchol is a Ph.D. candidate in International Economics at a prestigious university in Spain, specializing in macroeconomics, monetary policy, financial systems, and development economics.
