Where does black market get hard currency?
3 min readBy Mapuor Malual Manguen
A week ago, National Legislative Assembly summoned Minister of Interior, Minister of Finance and, the Governor of Central Bank to explain the existence of two foreign exchange rates in the country. This came after MPs in the National Assembly raised concerns about increasing black market rates in the country. While official rate is at $1 to 3.16 pounds, the black market rate swings from $1 to 4.65 pounds to more than that. This huge gap between the official bank rate and that one of black market is negatively affecting the national economy.
Last year, an attempt by Central Bank to devalue South Sudanese Pounds caused public outrage leading to reverse of that order. This came at the wake of the then booming black market for dollar business. It is clear that the Central Bank releases thousands of hard currency every week to forex bureaus and commercial banks operating in the country but, this money finds its way to black market where it is sold at exorbitant prices.
The law enforcement agencies often launch crackdown on “umbrella kiosks” or dollar hawkers who swarm around Juba town, Custom and Jebel Markets where this business booms. But attempt to control it never succeeded because hawkers are just a soft target. Where do they get hard currency in the first place? Do they manufacture dollars from streets? The real syndicate is there moving freely and kicking. What is the work of those National Security Officers assigned to commercial banks, forex bureaus and Central Bank? Are they also part of this syndicate? Are they doing their job well or is there a group somewhere impeding their work?
This does not need rocket scientist to control it! Look, Juba town is full of shoddy businesses that are looting and killing the economy of this country. These shoddy dealings range from fake patients travelling to Egypt or elsewhere, to quack students carrying university admissions that are produced within Juba town just to defraud Central Bank authority of hard currency. Indeed, there are genuine patients and students that need dollars. But, there is no body screening imposters from true patients or traders if you like.
Until now, I agree with a lawmaker representing Iso County, Dr. Festo Kumba, who put it clear that “Unscrupulous individuals and clicks with links in the country’s banking sector will soon crop up and take advantage of the dual foreign exchange system to make fortunes at the expense of the national economy.” But my question is, “Is the government working to avoid this vice from cropping up?”
This article was first published by The Juba Telegraph newspaper, Thursday, September 25, 2014 mapuormanguen85@gmail.com
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