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'Economic war' fears over new currency

Maggie Fick
Monday 25 July 2011 19:00 EDT
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A South Sudanese official said yesterday that northern Sudan has declared "economic war" by issuing a new currency just weeks after the two countries split.

Many South Sudanese are still holding old Sudanese pounds, Pagan Amum said. He said that the northern government has declared those to be illegal tender.

South Sudan also released a new currency, also called the pound, shortly after its independence on 9 July. Mr Amum says the north had agreed not to issue a new currency until six months after the South did. He said the move will cost South Sudan's government at least $700m (£430m).

The two countries still have not resolved major issues, including a disputed border region, oil management and revenues. AP

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