Commodity price hasn’t reduced, Juba traders expressed concerns over local currency gains
Traders in Juba have express concerns over the recent gain by the South Sudanese Pound (SSP) against the US Dollar. Will the local currency gain remains stable? As noticed, the prices of commodities in the market have not fallen.
In a Radio Tamazuj Report seen by NCMP, traders in the Juba are treating the gains made by the South Sudanese Pound (SSP) against the US Dollar with cautious circumspection and say they are skeptical that the local currency will remain stable because prices of commodities in the market have not fallen.
It will be recalled that the central bank of South Sudan has been trying to redeem the country’s currency from losing its value. Early last week, the SSP gained against the USD as a result of the Central Bank injecting USD 5 million into the market by auctioning the hard currency to commercial banks and forex exchange bureaus.
Now the entire market is flooded with US dollars. Considering the System, most black market operators are forced to almost sell the dollar at the official rate. Though this might not be desired by the operators of the business. But is this sustainable? Can this control the inflation rate?
Though the dollar is reducing in price, the effect on the daily transactions within the market is not noticeable. Most common South Sudanese are feeling the negative impact on their businesses.
The government needs to address the conflicts within the country. That is the ultimate solution to the present economic crisis. Peace is an essential prerequisite for economic development. It is nearly impossible for schools, hospitals, and businesses to operate when there is a constant fear of violence and destruction of property.
Moreover, highly peaceful countries have more than twice as high foreign direct investment. This is because peace creates a stable environment wherein businesses can flourish and government can function, ensuring the rule of law.
Another excellent approach to the current situation is to strengthen the country’s taxation system. There is a need for a proper information management system of commodity prices right from the origin, the government should put in place a tracking system through which commodities prices are documented from origin.
How much is a trader buying and selling a particular good, what is the tax on it? That way the system is free from exploitation and the whole process is transparent.