South Sudan’s Kiir Orders Banks to Lift Withdrawal Limits as Cash Crisis Deepens

Why It Matters

Lifting withdrawal caps aims to restore public confidence and avert a banking panic, while highlighting the government’s urgent response to a cash shortage that threatens overall economic stability.

Key Takeaways

• President Kiir orders banks to lift all cash‑withdrawal limits
• BoSS raised cash allocations to commercial banks to ease liquidity
• Economy shrank 23.8% in 2025 as oil revenue collapsed
• South Sudanese pound fell about 15% year‑on‑year in 2025
• Finance minister dismissed; Salvatore Garang named to lead recovery

Pulse Analysis

The cash crunch in Juba is a direct symptom of South Sudan’s over‑reliance on oil and the fallout from regional conflict. After the 2023 pipeline damage halted exports through Port Sudan, oil receipts fell sharply, leaving the treasury unable to fund public salaries and import essential goods. With government revenue accounting for more than 90% of the budget, the contraction of 23.8% in 2025 pushed the economy into a deep recession, while the South Sudanese pound lost roughly 15% against the dollar, tightening foreign‑exchange availability and inflating the parallel market.

In response, the Bank of South Sudan has taken a two‑pronged approach: increasing cash allocations to commercial banks and scrapping the SSP 10 million (about $2,158) withdrawal ceiling imposed in September 2024. President Kiir’s order for banks to lift all limits is intended to unblock cash for low‑value accounts, a segment that has been most vulnerable to the shortage. By ensuring uninterrupted access to funds, authorities hope to stem a potential run on deposits, rebuild confidence in the banking sector, and stabilize the domestic money market ahead of any further monetary‑policy adjustments.

The policy shift also signals a broader recalibration of South Sudan’s financial strategy. While short‑term liquidity relief is essential, sustainable recovery will require diversifying revenue sources, repairing oil infrastructure, and restoring macro‑economic credibility. The recent dismissal of Finance Minister Bak Barnaba Chol and the appointment of Salvatore Garang underscore the political will to address these structural challenges. Investors will be watching how quickly the cash‑withdrawal limits are lifted and whether the central bank can maintain adequate reserves, both of which will influence foreign‑direct investment and aid flows.