JUBA – The Central Bank of South Sudan is committed to maintaining a flexible exchange rate of the US dollar against the South Sudanese pound (SSP), the bank’s governor, Moses Makur Deng, said on Friday.
Deng also said he succeeded in unifying multiple exchange rates, thereby stabilizing the rate.
Deng believed that a fixed exchange rate policy would save the country’s deteriorating economic situation.
“The bank remains committed to the unified exchange rate and to keeping the foreign exchange market free of other impediments, to ensure that businesses and households remain able to purchase foreign currencies at a predictable and competitive rate,” he said. Deng told reporters at Friday’s press conference in Juba.
The US dollar rate was initially fixed against the pound, but in December 2015 the government decided to let the rate be determined by supply and demand.
The floating exchange rate allows speculators to monopolize the dollar.
Deng said the bank was taking steps to reduce the impact of rising prices on people’s livelihoods.
“The bank is keeping money growth below its 10% per annum growth cap, to ensure that external price pressure in South Sudan is not compounded by excessive money growth domestically,” he said. he declared.
The head of the BoSS revealed that the Ministry of Finance regularly pays salaries, including arrears, thus causing excess liquidity in the market,
He added that the Finance Department’s decision to end deficit financing has helped the economy stabilize.
South Sudan has experienced a significant increase in inflation.
The South Sudanese pound, SSP, has been depreciating rapidly against the US dollar over the past two weeks.
According to the latest exchange rates, an SSP is currently selling at 490.6856 and buying at 476.1826.