CURRENCY-Pounds weaken against dollar
By Bida Elly David
The country is on the verge of witnessing yet again an accelerating economic recession amidst continued deterioration in the exchange rate of South Sudanese Pounds against the dollar and constant skyrocketing prices of essential consumer goods.
The effects came open during the border stand-off on insecurity by truck divers which has since been resolved by the government and drivers are back on the road.
Speaking to Juba Monitor on Wednesday, several traders revealed that United States Dollar rate had sharply risen from 450SSP against one USD on Sunday to 500 SSP in the black Market by Monday evening.
According to Inyasio Moses, a trader in custom residential area who deals with direct foreign imported goods said, the hard currency had gained a consistent value against the local currency as it shot up on Monday due to the rise in the fuel prices a liter at various petrol stations.
However, an economic Analyst Abraham Matoc, the vice chancellor of Dr. John Garang University said the government should restrict and control free market economy to adopt price control mechanism to protect low-income consumers.
“To mitigate devaluation of the local currency and complete economic recession, government should seriously embark on restriction of free market system such that free market economy and random price discrimination of goods to decline,” he said.
He further added that the assumption of free-market economy could not prevent government from regulating prices of commodities in the market. However he argued that South Sudan was still developing economically making it possible for the government to centralize the free market syndrome.
Over the past days, the country had been experiencing constant economic recession due to fuel shortage.