The US dollar unexpectedly declined against the South Sudanese pound on the black market during Wednesdaytrading, with the price of the dollar reaching 45 pounds during those transactions, compared to 62 pounds for previous transactions.
The dollar’s decline came after the Central Bank of South Sudan pumped $3 million into commercial banks weekly in an effort to control markets and achieve economic stability.
The authorities at the Equatorial State Government in Juba said that they would oblige traders to reduce the prices of consumer goods in the market after the national currency regained its strength against the US dollar.
The Mayor of Juba, Callisto Lado, revealed his intention to hold a meeting with the Chamber of Commerce to review the prices of goods, expecting them to gradually decline.
The local official warned traders of the consequences of an increase in commodity prices after the dollar’s fall.
South Sudan lives entirely off of goods imported from neighboring countries due to lack of agricultural and industrial projects, and its dependence on oil sales revenues mainly.
The International Monetary Fund had agreed to grant South Sudan a loan of $174 million as urgent aid to the country whose economy was hit by floods during the past year.
According to Agence France-Presse, South Sudan’s stock of foreign exchange had run out last year, with the sharp decline in oil prices due to the Covid-19 pandemic depriving the government in Juba of oil revenues it badly needed, causing the currency to devalue.
South Sudan was the scene of nearly 6 years of a civil war which left more than 380 thousand people dead and 4 million displaced.
The war officially ended in February 2020 with the formation of a national unity government, after the conflict had destroyed the country’s economy.