Africa-Press – South-Sudan. South Sudan’s Central Bank is committed to a flexible exchange rate of the US dollar against South Sudanese pound (SSP), the bank’s governor, Moses Makur Deng, said on Friday.
Deng also said they have managed to unify the multiple exchange rates, thus stabilizing the rate.
Deng believed that a fixed exchange rate policy will salvage the deteriorating economic situation in the country.
“The bank remains committed to the unified exchange rate and to keep the foreign exchange market free from other impediments, to ensure that business and household remain able to purchase foreign currency at a predictable and competitive rate,” Deng told reporters during Friday’s press conference in Juba.
The rate of the US dollar was initially fixed against the pound, but in December 2015, the government decided to let the rate be determined by demand and supply.
The floating exchange rate gives room for speculators to monopolize the dollar.
Deng said the bank is taking steps to reduce the impact of higher prices on people’s livelihoods.
“The bank is keeping money growth below its growth ceiling of 10% per year, to ensure that the external pressure on prices in South Sudan are not compounded by excessive money growth domestically,” he said.
The BoSS chief disclosed that the ministry of finance has been paying salaries on a regular basis, including arrears thus leading to excess liquidity in the market,
He added that the decision by the ministry of finance to end deficit financing has helped the economy to stabilize.
South Sudan has seen a significant increase in inflation.
The South Sudanese Pounds, SSP have been depreciating against the U.S dollar rapidly over the last two weeks.
According to the latest exchange rates, one SSP is now selling at 490.6856 and buying at 476.1826.
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