South Sudan finance minister says new IMF funding to boost forex exchange

JUBA, MARCH 3, 2023 (SUDANS POST) – South Sudan on Thursday secured 114.8 million U.S. dollars in emergency funds from the International Monetary Fund (IMF) to help the country address food insecurity and support the health and education sectors.

Speaking to reporters during a press conference held in Juba on Thursday, Dier Tong Ngor, Minister of Finance said the fund will boost the country’s foreign exchange reserves.

“This amount will have short-term and long-term impacts on our economy, in terms of the short-term impact we are going to use this fund or the amount that we are receiving to boost our exchange reserves,” said Ngor.

Ngor said the resources will address the budget support and the economic impacts of the COVID-19 pandemic, the balance of payment, and reserve building.

“This disbursement will help meet the urgent Balance of Payment needs while supporting food security and the part going for the budget support will meet urgent health and education financing,” he said.

He also explained that the grant will be used to stabilize the prices of commodities in the market.

“When central bank intervened in the market with (forex reserves) FX the reserve now that they have that will automatically stabilize the exchange rate and will also bring down exchange rate and in long ran that will result into lower prices,” he said.