BANK Inflation down by 40 percent
Dier Tong Ngor speaks to the press yesterday at the Central Bank
(photo: Woja Emmanuel)
By Woja Emmanuel Wani
The Central Bank of South Sudan has reported a 40 percent decrease in inflation rate by the end of 2018, according to Dier Tong Ngor, Governor and Board Chairman Bank of South Sudan.
In 2016, the monetization of the fiscal deficit by the Bank of South Sudan stated the country’s high inflation peaked at 550 percent in September 2016.
In late 2016 to 2017, the pace of the printing of money slowed so inflation decelerated to 102 percent during September 2016–September 2017 according to Consumer Price Index for South Sudan published by the National Bureau of Statistics in November 2017.
In a press conference yesterday at the Central Bank, the Governor, said the signing of the Revitalized Peace Agreement and increased oil output boosted the nation’s econmy.
Ngor added that steady improvement in international oil prices and stable exchange rate also triggered the drop in inflation rate.
“South Sudan domestic outlook is starting to feature positive developments following the signing of the Revitalized Peace Agreement and increase in oil production. Also the steady improvement of international oil prices which will impact positively on the country’s foreign exchange reserves,” Ngor said.
He added that the inflation rate also dropped as a result of liquidity tightening stance taken by the Central Bank.
He explained that the exchange rate between local and hard currency has also remained stable except during the festive season of 2018.
“The exchange rate has also remained stable during the period except in December when the pound lost some value due to high demand for hard currency during the Christmas festive season,” Ngor added.
Exchange rate at the Central Bank has remained selling at 210 and 220 per dollar.