South Sudan pound has sunk to a new low against the US dollar.
According to numerous dealers, South Sudan’s native currency fell to a record low against the US dollar on Wednesday.
According to one trader who asked not to be identified, $1 was trading at 550 South Sudan Pounds in the early hours of Wednesday and ended up at 585 in the evening.
“At the moment, one US dollar is worth 585 South Sudanese pounds.” It was selling for 550 in the morning. “I’m talking about the underground market, not the official rate,” one unnamed merchant said.
Another trader, who did not want to be recognized, said that the central bank’s move to quietly boost the official rate has resulted in a rise in the price of the US dollar and that they anticipate the price of the US dollar, as well as other foreign currencies, to rise in the coming days.
“The administration has decided to boost the official rate on a daily basis.” “The central bank has a different rate today than yesterday, which has caused traders to be concerned,” he added.
“We also anticipate the price to rise at an unprecedented pace in the following month if the government does not take the necessary steps to confront the economic predicament our nation is in,” he said.
Last June, the governor of the central bank, Moses Makur Deng, warned people that he expects the local currency to weaken more due to external economic variables over which his institution has no control.
Makur said in a June 2022 statement that the crisis in Ukraine has led to South Sudan’s economic downturn as well as neighboring nations that have direct business contacts with invading Russia and Ukraine.
“The Ukrainian conflict has been a big shock to global commodities markets.” “South Sudan’s oil income is rising, and the nation is no longer reliant on food imports from Ukraine and Russia,” Makur added.
“However, we continue to witness growing costs for refined petroleum products and food commodities imported from our regional nations.” These trends are projected to lead to an increase in inflation during the next several months,” he noted.
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