By Garang Atem Ayiik (Gatem), Nairobi, Kenya
January 18, 2017 (SSB) — This week, H.E President Salva Kiir issued a decree relieving top officials in central bank of South Sudan and appointing a new governor and his deputy. As expected, the President is concerned about hyper-inflation that is causing misery to citizens.
Author of this article believe that strong institutions, manned by strong people, play complementary role in meeting an institutional goals.
Without significant changes to central bank’s operation; so long as a central bank remain as an ATM of executive, so long technical staffs’ capacities are not enhanced, recent changes in central bank can be analogized to “changing monkeys on trees, but leaving the forest intact.”
On central bank governance, economists agreed that a good central bank is built on three pillars – independence, accountability and transparency. Any form of governance adopted by a central bank, has an impact on achieving its main objective of macroeconomic stability.