The prices in the market are skyrocketing as local currency depreciates against USD

Wednesday October 14, 2020 (SS24News)

Editorial nalysis on the ongoing economic crisis in the country

The current inflation has reached unprecedented level in the country. The government of South Sudan has lost control over the market forces. Last month, the central bank has publicly declared bankruptcy. The governor of the bank said, government has no control over dollar inflation because they have hard currency reserves in the bank.

South Sudan pound keeps on losing it value against US dollar, as of today the USD sales at 650 Ssp per dollar and the prices of the basic commodities are skyrocketing each day.

Two days ago, the union of local bakers have increased the prices of bread from 200ssp to 350 ssp, the increase in bread prices have caused panic to the local population as many couldn’t afford to buy a bread. Civil servants have gone for months without their salaries and government has not increased the salaries to meet the deteriorating market forces

The government has recently hinted to change the currency in order to curb the hyperinflation and mitigate the soaring prices in the market.

Government officials have been accused to have stashed their loots in the houses, commercial banks in the country have run out ofncash due to shortage of pounds in the banks, according to voices randomly interviewed, they said , the banks are not trustworthy these days , once you deposited your money in the bank and if you want withdraw it the following day, the bank will tell you that there is no cash. This has instilled fear to many people that’s why many have opted to keep money in their houses for safety and accessibility.

Government has formed economic crisis committee last month, the committee was mandated to frame strategies and mechanisms to overcome the ongoing economic impact in the country, the government responded by sacking the minister of finance and economic planning and his replacement was named right away, until now there are no clear headway and policies put in place to stabilize the shattering economy.

The peace agreement that was signed in 2018 is facing hurdles as parties to the agreement are dragging their feet to implement the document

The security arrangements have not been fully implemented, the national parliament hasn’t been reconstituted according to the agreement, this has contributed immensely to the deterioration of the economy in the country.

Economic recovery doesn’t happen overnight, it needs strong political will from the leadership, it needs consolidation of peace, stability and clear policies that can strengthen the institutions in order to carry out necessary reforms.

The government needs to implement the current agreement and change to improve our economy fully. Changing currency will not improve and mitigate the collapsing economy in the country.

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