South Sudan's Salva Kiir sacks bank chief Elijah Malok Published duration 17 August 2011

image caption The value of South Sudan's pound is falling against the US dollar.

South Sudan's President Salva Kiir has sacked the central bank governor - about a month after the new country launched its currency, the pound.

The dismissal of the governor, Elijah Malok, comes as the new currency has been sliding against the US dollar.

Mr Kiir said Mr Malok would be replaced by his deputy, Kornelio Koryom Mayiik.

South Sudan, which seceded from the north on 9 July, is battling to create a new state, analysts say.

Shortly after its independence, it accused the north of triggering an economic war by launching a new currency of its own.

The north also blocked an oil shipment from South Sudan, accusing it of failing to pay custom fees.

'Rise in inflation'

Mr Kiir dismissed Mr Malok by presidential decree and gave no reason for his decision.

Mr Mayiik, the new governor, had been in charge of a committee that oversaw the launch of the South's currency about a week after its independence.

The BBC's James Copnall in Sudan's capital, Khartoum, says the South is going through the complicated process of creating a modern state, while also dealing with major security and development challenges.

Mr Kiir was to have named a cabinet last week, but has so far failed to do so, our correspondent says.

Mr Kiir has insisted his choices will be based on quality, but he will find it difficult to escape ethnic considerations, he adds.

Economists are also worried about the lack of co-operation between Sudan and South Sudan.

Both states are locked in a race to replace their old currencies, raising fears of a sharp rise in inflation, our correspondent says.

The new currencies of both the north and the South are falling against the US dollar, he adds.