South Sudanese central Bank has run out of foreign cas h reserves and there is nothing the bank can do stop the Sudanese pound from the further depreciating against the US dollar, according to a senior bank official.
“It’s difficult for us now at this moment to stop this rapid exchange rate because we don’t have the fpriegn reserves for usto intervene in the market,” said Daniel Kech Pouch, a bank second deputy, at a Wednesday news conference.
Pouch acknowledged south Sudanese black market is flush with US dollars, but he said those dollars never make their way into the Central Bank.
“There are other agencies that bring money to south Sudan that doesn’t come through the Central Bank. And there are some commercial banks that bring money, which doesn’t come through Central Bank You know the central Bank has no system that unifies the operation of th e Bank with the flow of money, whether inside or going outside,” Pouch told VOA.
International NGO’s and other agencies bring money into the country, bit they sell directly on the the street or on the black market , according Pouch.
South Sudanese economy Sudanese economy has been devastated by several in 2011, including a five and half years of civil war., a drop in global oil prices and the Covid-19 pandemic.
Nearly all of South Sudanese revenue comes from crude oil, but current output is only about 180,000 barrels per day, down from a peak of 250, 000 BPD before the war erupted in 2013, according to the government figures.
The country’s economic trouble date to January 2012 , when the south Sudanese suspended all oil production following disputes Suadan over processing and transit fees for exporting Juba’s crude.
When the south Sudan emerged from it’s Civil war, the government should have invested in the country’s infrastructure , said Professor Martial Awou, former dean of economics at the University of Jubaan and vice chancellor of South Sudanese upper Nile University.
The Central Bank failure to obtain foreign currency will translate into more suffering for businesses and citizens , said Ahmed Morjan , an economic lecturer at University of Juba.
The Us dollar exchanged for165 south Sudanese pounds Thursday in the central Bank. On the black market , the dollar exchanged 400 South Sudanese pounds•
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