The National Alliance: Policy of Devaluating Local Currency Must Be Revoked

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A trader counting his money in market. (Photo: Supplied)

Dec 19, 2015 (Nyamilepedia) — The National Alliance, a coalition of several South Sudanese Political Parties inside South Sudan, has called upon South Sudan Minister of Finance and Economic Planning Deng Athobei to revoke the policy of devaluation of local currency adopted last week. In a six (6) point-page official statement, signed by Party Representatives, extended to Nyamilepedia regrets the decision taken by the Central Bank of South Sudan (BOSS) devaluing South Sudanese Pound and calls upon South Sudan Ministry of Finance to revoke the decision for it doesn’t favour the market.

“We call upon the Minister to immediately revoke his decision regarding the new policy. Attention should be directed to fighting corruption, protecting the lower income levels, promotion of production and encouraging investment. All these need a conducive atmosphere of peace. It is only peace that can create a genuine economic reform that will control inflation through sound fiscal and monetary policies,” reads the statement.

South Sudan Minister of Finance and Economic Planning on Monday, December 14, 2015 released a surprising economic plan that allows to depreciate South Sudan Pound against the US dollar with effect from the same night. This economic plan stipulates that Foreign Exchange rate wouldn’t be as fixed as it has been but would be based on the market behavior, giving the dollar holders to determine the fate of the local currency based on the their own exchange rate.

The current exchange rate as per new economic plan has put 18.55 SSP per US Dollar, already triggered high-rocketing prices of commodities in the local market.

“The reaction of the market was as expected; the prices shot up. The wholesale dealers who sell food items, all foreigners, closed their shops.”

“On Wednesday, for instance, the prices of some of the consumable goods were as follows: the price of a bag of flour rose from 450 to 975 SSP, bag of sugar from 650 to 1,250. A litre of fuel now sells at 22 SSP, up from just 6 SSP. The transport fares have also gone up drastically. The worst has yet to come,” reads part of the statement.

“On Wednesday, the importers bringing in goods to our country from Uganda returned at Nimule when asked to pay the customs at 18.5 SSP per dollar as opposed to 3 SSP previously. This will exacerbate scarcity of goods and thus higher prices. As long as the prices are pegged to the dollar, they will continue to shoot up and the masses of our people will get impoverished more and more.”

Last week, the Central Bank of South Sudan lifted obligations that require banks to determine their own exchange rates, a policy reaffirmed by South Sudan Minister of Finance and Economic Planning. The ongoing war further complicated the economic conditions of the country. South Sudan main exports is on oil but most pipelines from war prone areas particularly in Bentiu have been shut down with exception of that of Upper Nile State.

 

This report is compiled by Gatluak Pal Chuol, Associate Editor of Nyamilepedia. He can be reached via palgatluak2002@gmail.com.

3 comments

  • That is a work of Dinka kingdom which failed our country!

  • Wedjuba

    This is shocking!!,.

    These incompetent Dinka thieves in Juba did it again.They can’t stop surprising us with gloomy news.

    This inflation will ravage every low income South Sudanese to an extreme level. It will push many towards bitter poverty lines.

    Yet again these worthless Jiengs are up with chains of economic and political mischieves.

    What the F….., is your problems people?

    Now, this means, food, fuel, water, medicine…., almost every product and service on the market is going to be expensive and hard to afford, given the fact that taxes on these products will respectively raise! This is a total mess, a paltry financial regulation.

    Why now before Christmas? Well, logically the greedy Dinkas expect to harvest more floating SS pounds they can get out there against the dollar, and so letting every South Sudanese to financially bleed while preparing to buy for Christmas.

    Mr. Atorbei and Koriyom have once again demonstrated us beyond every doubt that Dinkas are of no good in any leading organisation in a society.

    Mr. John Garang is dead, and he took with him all the reasonings of a human being from the Dinkas.

    Ladies and gentleman,

    Dinkas have ruined our beloved country South Sudan, and these animals don’t even realise or understand it! For they are shameless and lack the conscience of a normal human.

    The economic, political and social fabric of our country South Sudan is completely out of shape.
    We must put an end to this misery.

    I think they have stolen the country bad enough, the rest of the 63 tribes must now make wise choices and take oath before God to NEVER let them occupy those sensitive positions EVER again in South Sudan come total reforms in the government.

    “Somebody once said, our country South Sudan is like a new born baby who will encounter difficulties at early age, I say,….that baby is now laying barely in COMA, in an intensive unit at a hospital with fatal injuries inflicted by his reckless, incompetent and irresponsible parents the Dinkas”.

    We must rescue that child!!!.

  • James

    I think the problem is not tribal.The reality is that the leaders are exploiting the loopholes and the weakness of the current constitution.No law no no crime.Economic criminals loom free.