South Sudan abandons US dollar for local currency

South Sudanese pounds

People jostle to exchange their old Sudanese Dinars into the newly introduced Sudanese pounds in 2007. PHOTO | FILE | REUTERS

South Sudan’s government has suspended the use of the US dollar and instead directed all transactions be executed in the local currency, the South Sudanese pound (SSP), in a move feared to stifle economic activity in the war-ravaged economy.

Most transactions in the country are carried out using the US dollar, largely due to hyperinflation and the volatility of the local currency.