South Sudanese pound depreciates further against US dollar

JUBA – The South Sudanese Pound (SSP) has depreciated further against the United States Dollar (USD) in the first week of September triggering rise in commodity prices, traders in Juba said this morning.

One trader at Juba market who identified himself as Atem said one United States Dollar was traded between 490-500 at the black market on Friday and jumped to SSP 510 on Saturday morning.

“The Pound is losing its value every single day. Yesterday it was traded between SSP 490 and 500. Today, it is 510,” Atem said. “So, this is a very big concern for our country and we expect further decline in the value of Pound in the few coming days.”

Another trader said senior government officials could be seen on the streets ion Juba selling dollars without measures from the authorities saying such activities from official of the very government that is suppose to impose measures to control the circulation was undermining the war against depreciation.

“You cannot control depreciation when you are involved in illegal activities. Government officials who are supposed to fight these illegal activities are here with us on the streets. So it is becoming a joke,” the trader added.

Last month, South Sudan government announced that it has run out of its foreign reserve exchange, triggering President Salva Kiir to form an economic management committee to address the alarming issue.

On Thursday, the minister of trade and industry Kuol Athian said the government could not control the circulation of foreign currency because it owes many commercial banks operating in the country almost $100 million.

“According to what they have told me, the commercial banks say they need money from the central bank – Equity needs about $47 million; KCB, $16 million; Ecobank, $15 million; Cooperative Bank, $10 million dollars; Ivory Ban, $4 million,” Athian told lawmakers during an extraordinary session in Juba Thursday.

The central bank said Friday that it planned to ban the use of foreign currency nationwide to prevent further depreciation of the South Sudanese pound against the U.S. dollar after prices of food and other basic commodities have skyrocketed in recent weeks and months.