South Sudan started off with a new currency pegged after a few months to the USD, but faced difficulties in oil arrangements and acute domestic conflicts leading to civil war. The authorities struggled to manage the economic crisis, with some limited success.
|Years||Targets and attainment||Classification|
|2012-17||new currency introduced at time of independence from Sudan in July 2011, pegged from September 2011 to USD; new central bank (taking over from southern branch of Sudanese central bank, within limited financial system) rations forex sales, which provokes rise of parallel market; 2012 dispute with Sudan over oil transit fees leads to short-term shutdown of oil production, cutting almost all tax revenue; fiscal restraint and limits on central bank lending to government delay but do not prevent inflation-depreciation spiral; wider efforts to build capacity and institutions, but persistent internal tensions and conflict, civil war from late 2013 with major internal and external displacements; peace agreement 2015 but renewed civil war 2016-17; late 2015 exchange rate floated but managed (and parallel market premium persists); growing economic and humanitarian crisis; statistical database very weak||loosely structured discretion LSD|
Selected IMF references: Request for Disbursement under the Rapid Credit Facility and Staff-Monitored Program, June 2013, pp3-11; SR 2017 pp4-8; SR 2019 pp4-7; SR 2021 pp25-6.