![South Sudan Central Bank governor Dier Tong Ngor speaking to reporters in Juba in April [Photo via Eye Radio]](https://i0.wp.com/www.sudanspost.com/wp-content/uploads/2021/05/IMG_20210401_113729-847x565-1.jpg?ssl=1)
In April, the governor of the Bank of South Sudan Dier Tong Ngor announced that the financial institution was going to auction on weekly basis and amount of $5 million United States dollar to fight economic crisis.
Following the auctioning of $5 million dollars that month, local currency gained strength against foreign currencies and the latest decision by the central bank takes the Pound’s strength to another extend.
Speaking during a press conference in Juba, Dier said the bank will distribute starting next week at least $8 million dollars to local banks and forex bureaus expressing hope that the current economic fragility can be addressed.
“We felt as a Central Bank that the current trend can be addressed. So we have decided to increase the amount that we are auctioning to the market starting from next week,” Dier told reporters in Juba.
“The upward movement of the exchange rate in the last few days is something to do with development. Schools are opening up in the East African region, Uganda in particular and because of that there is a demand of foreign currency in order for people to meet the needs of registering their children in schools,” he added.
“By increasing the supply by more than 60 percent, we think that we will also capture excess liquidity that we think is outside,” the central bank chief further stated.
I wonder how many years will our central bank manage to fight inflation by this style? It’s only treating symptoms instead of the disease – the limited supply of basic commodities!
It is like treating malaria with paracetamol and aspirin. They may appear helpful for few minutes of relief from pain but is a far cry from treatment as Plasmodium will keep smiling and multiplying to the peril of the patient.
The real treatment would be investing in growing local food chain and food manufacturing from salt, healthy drinks to fisheries, etc. Outside population and their needs has been there for decades but were never the cause of inflation but the crisis that started 8 yrs ago.
If there is anything the BoSS could help the nation, it is to shift the attention away from exchange rate (and has the leverage to do so effectively) to investing in incentivized local-products (foods) manufacturing and infrastructure and the dollar fever will solve itself.
Can you imagine the price of salt and flour if manufactured in Juba instead of giving $$$$$$$$$ to the so-called businessmen to keeping buying tones of these basic items from our neighbors, will it not always finish and take us back to square one?
Should anything happens btwn us, our neighboring countries knows how dependent and vulnerable we are (from salt, fuel, flour and cement) and may block their border anytime for any whims and that’s when we will have to pay dearly for our gross neglect and lack of discernment since 2005 in readying ourselves and posterity. God help South Sudan!!!