On SSP devaluation: The Bull Will Defend Itself!
By Malith Alier, Juba, South Sudan
December 21, 2015 (SSB) — Many people are up in arms because of the floatation; call it devaluation of South Sudanese Pounds (SSP). That is understandable. Even those far afield put their noses in trough.
A short history is in order. In 2013 the same devaluation was attempted by the Bank of South Sudan (BSS) Governor only to be thwarted by the lawmakers before it took off. The Dollar was set at SSP 4.50.
For how long are citizens going to defend the bull? Assuming that SSP was a bull, borne in July 2011, it is now a four-year old and ready to fight with other bulls on the ranch. It is ready to face; shillings, Birr, US Dollar and others.
Time has come to sharpen the horns of the SSP by increasing production, increasing exports and decreasing imports, attracting Direct Foreign Investment (DFI) and start saving schemes.
Remember that the government still subsidises fuel at the pump. Earlier, the motorists were paying $2 per litre before devaluation and are paying only $1.60 per litre after devaluation. What more do they need.
The experts agree that devaluation is the right thing to do for the economy of the country at this moment. Why should SSP be the elephant in room when all the regional currencies are trading in their hundreds and thousands against other currencies?
Kenyan Shilling purchases $1 at Ksh100; $1 fetches over 3000 Ugandan Shillings. Therefore, the Pound will find its true worth if allowed time to trade freely against these currencies.
The artificial value of the SSP hurt the country for long therefore, all are urged to be patient with the measures taken by the government.
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