This archive report was first published on 25 August 2021.
On August 2, 2021, the International Monetary Fund's Board of Directors approved a historic allocation of Special Drawing Rights (SDR) equivalent to $650 billion to boost global liquidity. This allocation became effective on August 23, 2021, and will be credited to IMF member countries in proportion to their existing quotas in the Fund.
South Sudan is set to receive a significant portion of this allocation, with the International Monetary Fund (IMF) approving a $334 million loan for the country. The loan aims to improve South Sudan's ailing economy by bolstering foreign reserves and enhancing external resilience.
According to Central Bank governor Dier Tong, the loan will help sustain current reforms in the exchange market and improve the country's foreign reserves. This is not the first economic stabilisation loan provided by the IMF to South Sudan, as the Fund gave the government another loan of $174.2 million in late March.
The South Sudanese Pound has been declining in value due to the country's depleting foreign currency reserves. The IMF's loan is expected to help alleviate this issue and stabilize the economy.
