SPRINGWOOD, AUSTRALIA-03, March 2020– The South Sudanese Pound has made slight gains against the greenback this afternoon, completing a positive run of £130.2608 since Monday 2nd March. The Pound has not been doing well against major currencies plummeting to 130.2590 against the dollar on 13th February, its lowest over a 12 months period.
A comparatively strong currency during its introduction almost a decade ago, the pound has been battered by a combination of the negative balance of trade and the civil war that caused a stoppage in oil production. South Sudan produces very little food for the domestic market, so the shortage is covered by imports from Uganda, Kenya, and other regional countries, leading to lower demand for and a fall in the value of the pound.
The reduction in oil exports also led to a shortage of hard currency, resulting in high demand for the dollar
The reduction in oil exports also led to a shortage of hard currency, resulting in high demand for the dollar which complicated the problem on an already weakened pound. During its hay days in 2011, the pound traded against the dollar at a ratio of 2 to 1, making it one of the strongest regional currencies.
For the pound to rally back to its days of glory, a ramped-up local food production, supported by increased trading in the pound will result in a positive outlook.