South Sudan launches new currency

South Sudan has on Monday started rolling out its new currency called the South Sudan Pound.

"It is out, we have launched. The president came this morning and changed some money. It is in operation now," South Sudan's Central Bank Governor, Elijah Malok told reporters.

He added that the currency was already being used on Juba's streets.

Experts say this escalate a point of simmering disagreement with Khartoum after the country split away from the north on July 9.

Exchange rate

Report says the new currency is being exchanged at a one-to-one rate with the existing Sudanese pound.

Malok has estimated it would take between one to three months to replace the pounds in circulation now.

A precautionary measure

The move was complicated by Sudan's announcement that it would also launch a new currency, which the country's central bank governor described as a "precautionary measure" to protect Sudan's economy.

Sudan is trying to deal with high inflation and the loss of about three quarters of the united country's roughly 500,000 barrels per day of oil output after the south seceded.

The new nation is eager to fend off any more economic disruption.

The fate of the old currency

Negotiations are currently stuck on whether Sudan should buy the Sudanese pounds circulating in the South.

However, Sudan has said the notes will be worthless.

"We do not want to buy it. We want them to surrender it to us because it is valueless," Sudan's Central Bank Governor, Mohamed Kheir al-Zubeir told reporters.

South Sudan's Malok said the new country had not decided what to do with the old currency if Sudan refused to accept it.

"If they don't take it, we don't know what we will do with it. We will still try to come to an arrangement (with Sudan)." he said.

REUTERS/Shakira/Williams