Traders say injecting dollars to the market can’t combat inflation
By Bida Elly David
Foreign and domestic traders have yesterday predestined the initiative taken by the Central Bank of South Sudan of injecting 13 Million as a mechanism to solve inflation issues terming it as a no solution mechanism.
Speaking to Juba Monitor yesterday, Maliamungu Jonathan a vendor possessing a phone shop in Konyo-Konyo reiterated that the initiative taken by the Central Bank of South Sudan could not solve inflation problems since domestic production; insecurity and infrastructure have been passively weak.
‘’I need to say that the policy of Central Bank injecting 13 Million in the market cannot solve inflation problems since domestic production of commodities in South Sudan is low, insecurity and infrastructure are not up to date’’ Maliamungu said
Maliamungu reiterated that money was just a medium of exchange that determined the value of commodities sold but not the level of production in macro-economic perspective.
At the same juncture, he stressed out that what could also determine the growth of domestic production was total commitment from the domiciles towards production as well as the will to acquire skills.
‘’What we know as traders is that you cannot solve inflation problems by injecting money to the market only since it is just a medium of exchange that determine the value and the quantity of goods sold but not the level of production’’ He added
However, Musa Ahmed a boutique proprietor in Juba Market stressed out that the injection of Dollar by the Central Bank to the Money market could only give a tentative solution to economic barrier but still many efforts was needed by the National government to boost domestic enterprises since most large scale businesses were run by aliens.
‘’Based on my opinion as a trader, the injection of Dollar by the Central Bank to the Money market could only give a tentative solution to economic barrier but still many efforts is needed by the National government to boost domestic enterprises through tax exemption since most large scale businesses are managed by aliens’’ Musa stressed