Following last week’s cabinet meeting on changes to the South Sudan Pound, the local market has in the past few days experienced fluctuation in Forex rates resulting in price increases of many products. The Presidency yesterday was locked up in an extraordinary Council of Ministers meeting to discuss the economic situation. Government Spokesperson Michael Makuei Lueth says that the government through Central Bank of South Sudan will pump into the market more dollars to prop up the pound after weakening to hit $1/SSP750 yesterday.
“The government is planning to inject into the market through the central bank and other commercial banks lamp sum that will enable us to control the economy,” Michael Makuei told reporters after an extraordinary cabinet meeting in Juba on Wednesday.
Pound weakened close to its all-time low after Makuei announced the government plan to change the currency. The news sparked weighed down by corporate dollar demand and US currency’s strength
The move comes amidst economic fears as market prices shoot up and some traders closing shops due to the crazy exchange rate, a situation that seems to have been caused by several factors.
In September 2020, the second deputy governor of the Bank of South Sudan, Daniel Kech Pouch told reporters that the bank had run out of foreign reserves, bringing the economy to its knees.
Due to public outcry, the bank withdrew its statement, claiming it still had little in the reserve.
In addition, the minister of trade and industry admitted that there was nothing the government could do to stop the local currency from losing its value.
This compelled President Salva Kiir to form the economic crisis management committee to devise ways of revitalizing the economy.