South Sudan moves to improve value of currency

Posted: October 29, 2011 by PaanLuel Wël Media Ltd. in Economy

The new South Sudan legal tender.

Photo/FILE The new South Sudan legal tender.

By MACHEL AMOS Nation Correspondent
Posted  Saturday, October 29  2011 at  18:43

Juba, Saturday

South Sudan Central Bank has raised the value of its currency, the pound, from the recent low of 3.2 at commercial banks and foreign exchange bureaus and 4 on the black market to 2.96 against the dollar.

The Central Bank, in collaboration with security agencies, has moved to get rid of the black market, commonly referred to as mobile foreign exchange bureaus, where the pound was selling at 4.2 against the dollar.

“The dollar should be selling at 2.96 and if it goes to 3, we have no problem, but if it goes to 3.8, we won’t accept that,” Central Bank governor Korenellio Koryom told a press conference.

“We have also made some agreement with security personnel to clear mobile foreign exchange bureaus,” Mr Koryom said.

Weeks ago, the Central Bank doubled the amount of US dollars it injects into the market monthly to counter the purported scarcity.

The amount it injected was $200 million. The measures are part of a wider strategy to curb the hiking food prices and stabilise a fledgling economy that mainly revolves around oil revenues and depends on imports largely from East Africa.

Last month, the Interior ministry disbanded all illegal checkpoints across the country, where security personnel have been accused of extorting cash from traders through double

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