![Man (hands seen) holds sum of South Sudanese Pound in the black market in Juba [Photo by ELRHA]](https://i0.wp.com/www.sudanspost.com/wp-content/uploads/2020/09/South-Sudan-Cash-Transfer.jpg?resize=1024%2C597&ssl=1)
Robert Pitya, chairperson of the chamber in Central Equatoria said in an interview with Sudans Post on Tuesday that the government should prioritize stabilizing the dollar to curb rising prices of basic goods.
“We need the dollar rate to stabilize in a fixed amount,” Pitya said. “If it is 150 SSP, let it continue like that. When it stabilizes, the prices will start reducing.”
He blamed market volatility and uncertainty for inflated prices, as traders hedge against potential further increases in the dollar’s value.
“People are uncertain because they don’t know how much the dollar will increase further,” he explained. “Once it stabilizes, people will know the black market rate, Central Bank rate, and the Commercial Banks rate.”
He emphasized that stable exchange rates are crucial for controlling commodity prices.
“With stability of the exchange rate, things will get better and it will bring harmony because at the end of the day, things will harmonize and prices will change gradually and effectively,” Pitya said.
“Traders can’t reduce prices when the dollar rate keeps on increasing because they are uncertain about the rate,” he added.
The U.S. dollar currently trades at 230 South Sudanese pounds. It was traded at 3450 over the weekend before falling.
This significant depreciation of the SSP against the USD puts a strain on the economy, making imports more expensive and contributing to inflation.
