Central Bank and Ministry of Finance sign MoU on operational cash management framework
By Daniel Mareng Wek:
JUBA, Aug. 15, 2024–In a significant development for the financial sector, the Central Bank and the Ministry of Finance officially signed a Memorandum of Understanding (MoU) on enhancing liquidity and operational cash management on Thursday at the headquarters of Bank of South Sudan.
This system aims at streamlining financial transactions by reducing the need to carry large sums of physical cash through promoting digital transfers.
The MOU was signed by Hon. Samuel Yanga Mikaya, the 1st Deputy Governor of the Central Bank and Hon. Malual Tap Dhieu, the 1st Undersecretary for Finance. This move is expected to pave the way for substantial reforms in the banking system, with the goal of improving efficiency and security in financial transactions.
Following the signing ceremony, 1st Deputy Governor Yanga addressed the media, explaining that the new system will impose limits on the amount of physical cash individuals can carry that would reduce potential risks for clients.
He highlighted that the current practice of carrying bulky cash poses significant security risks, while the new system aims to mitigate these threats by promoting safer digital alternatives.
For his part, Hon. Malual Tap, the 1st Undersecretary of Finance, reiterated that both institutions will soon issue a formal circular outlining the details of the new banking system.
The MoU represents a critical step towards modernizing the banking sector and enhancing financial security, setting the stage for more efficient and secure financial transactions in the future.