Gov’t to introduce measures to strengthen pound against dollar

Obaj Shago | February 12, 2017 | 3:01 pm

USD 100 amounts to SSP12,000 -as of Saturday 11, Feb, 2016 at the 'Black
market' price

The National Ministry of Finance and the Central Bank say they are working
to reduce exchange rates of South Sudanese Pounds against foreign
currencies in order to reduce market prices.

This comes during a meeting between the Minister Stephen Dhieu Dau and the
Governor of Central Bank, Dr. Othom Rago Ajak. Both officials say they
discussed the current economic situation in the country.

The Governor of Central Bank, Dr. Othom Ajak Rago told SSBC television on
Saturday that the two institutions are exploring ways to manage the high
inflation affecting all sectors of the economy.

Dr. Othom said one of the ideas is to pump more hard currency into the
market.“You see if the demand is very high, the price has to go up. So such
situation is fought by increasing the supply. We intend to do that,” said
Dr. Othom.

Stephen Dhiu Dau, the Minister of Finance also said they are going to
review the exchange rate of the South Sudanese Pounds against foreign
currencies.He said they intend to somehow strengthen the pounds against the
dollar. Mr. Dhieu however, said the government will not interfere with the
‘free-market’ system, IN WHICH THE PRICES FOR GOODS AND SERVICES ARE
DETERMINED BY THE OPEN MARKET AND CONSUMERS.

“We intended to coordinate on monitoring and fiscal policies and the
current situation the status of economic generally. We have reviewed the
recent development in the market including exchange rate of the SSP against
the foreigner currencies,” said Dhieu.

SOUTH SUDAN ADOPTED THIS SYSTEM WHICH ALLOWS FORCES OF SUPPLY AND DEMAND TO
FUNCTION FREELY FROM ANY INTERVENTION BY A GOVERNMENT, PRICE-SETTING
MONOPOLY, OR OTHER AUTHORITY.

“We are committed to the market policy the freedom of the market and we as
the government together with the Central Bank we also intervene as one of
market players,” He added.This week, the rate of a hundred U.S dollar sales
at Twelve Thousand in the parallel market, known as, the ‘Black market.’

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