South Sudan not broke, says Central Bank governor

JUBA – South Sudan’s Central Bank governor, Dr. James Alic Garang has denied reports that government faces a financial crisis due to economic shocks, saying only oil revenues are affected by the war in Sudan.

As an intervention measure, Garang urged traders to reduce commodity prices in the market as the South Sudanese currency (SSP) regains its value against the United States Dollar (USD).

“From time to time, all governments all over the world go around sourcing funding. We have done that and we have mobilized some resources. That’s why last week for example the ministry [of Finance and Economic Planning] was able to pay salaries and we are able also to intervene in the market,” he explained.

Most traders say they are optimistic the local currency will stabilize against the dollar in the wake of the current inflation worsened by the ongoing crisis in Sudan.

Last week, the Central Bank banned illegal trade in foreign currency, urging traders to obtain operational licenses.

“Not everybody is able to afford one meal per day as a result of the dollar rate. Although the dollar rate is now going down, prices are still remaining high and nothing has been done by traders,” Dut Deng, a Juba resident.

Joseph Wani, a commercial cyclist, presented a similar view on the situation.

“This economy is now at its worst level. I leave my home every morning to come to work, but at the end of the month, I have nothing to feed the family. The SSP has no value anymore, there is nothing I take home,” he said.

South Sudan heavily relies imported commodities from neighbouring Uganda and Kenya.