By Bida Elly David
Agricultural production is the key to stabilize prices and strengthen the South Sudanese pounds.
Central Bank governor, James Alic Garang made the observation in response to the ongoing economic turmoil in the country.
The Central Bank has been using currency auctioning as a major tool to stabilize the market and promote the appreciation of the South Sudanese pounds but to no avail.
However, the financial institution continues to face challenges in finding sustainable solutions as the value of the South Sudanese Pounds continue to drop against the US dollar.
Speaking during the inauguration of a Central Bank branch in Nimule last Saturday, he noted that the limited production of goods in the country is a contributing factor to the economic recession.
“The national currency can become strong through production, you produce in order to consume, if you have not produced, you will have so limited to go around,’’ he said.
“The significant of production and revenue mobilization cannot be underscored, when there are few goods to go around as we all know, prices are likely to go up but when we have more of everything we need, prices will not go up, so let us produce,’’ he said.
Garang further mentioned that the strength of the local currency will only improve through increased production, sales, and exchange.
He highlighted the lack of economic diversification and inadequate revenue collection as the main causes of the ongoing economic recession.
Dr. Alic said enhancing local production and improving revenue collection are the only solutions to achieving economic stability in the country.
He stressed that improving domestic production would allow the government to generate the necessary revenue to pay salaries and improve the standard of living for the people.
“Using these resources and boosting agricultural production will be one way to produce more, consume more and sell more, when you sell more and produce more, it makes your currency strong,’’ Alic repeated
Meanwhile, Africano Mande, the commissioner general of the South Sudan National Revenue Authority, supported Garang’s call for increased agricultural production.
Mande underlined that a country with a comparative advantage that fails to produce is greatly affected.
He urged citizens to utilize the available land to enhance production, combat food insecurity, and improve their living standards.
The NRA boss highlighted that the revenue generated by the government from both the oil and non-oil sectors is insufficient to meet the needs of the entire population.