By Bida Elly David
Despite South Sudanese Pound (SSP) drowning against the US dollar, economic analysts note that changing the currency won’t solve the nation’s economic plague.
According to the Vice Chancellor of Dr. John Garang University, Abraham Matoch, an economist, change of currency was an old strategy, not applicable at the moment.
“The issue is not changing the currency. I have already proposed this since 2018,” he stated.
Matoch argues that the government needs time to implement its planned interventions.
“The government has already intervened and outlined specific points to be followed,” he stressed.
The economist emphasizes the importance of public vigilance in monitoring government’s plan, warning that any failure could have severe economic consequences.
Meanwhile, for Abraham Malieth, a Professor at the University of Juba, who is also an economist, auctioning dollars could help but needed stringent Central Bank control.
He criticized the bank’s passive approach, stating that their current cash injection strategies lack transparency.
Malieth noted that the Central Bank also lacks control over cash flow after dollar auctions which contributes to the dominance of foreign currency and the decline of the SSP.
He believes, restoring the value of SSP requires addressing underlying production issues to ensure long-term economic stability.
“The solution lies in fixing all factors of production. The Central Bank also needs to implement stricter monetary policies to recover money from the public and reduce its circulation,” he stressed.
Malieth further advised the government to prioritize centralizing the economy to avoid a complete economic collapse.
Traders’ Perspective.
While the public grapples with the declining Pounds, some traders, like Rizik Manas, a wholesale shop owner in Gudele Kubri Haboba market remain largely unaffected due to their dollar-based operations.
“I don’t keep SSP because it loses value,” Manas said.
He however highlighted the crucial need for increased domestic production to reduce reliance on imports and stabilize the local currency.
“My only wish is to see increased production within South Sudan, making the dollar less essential,” he expressed.
President Kiir recently directed the Economic Cluster to collaborate on measures to control inflation and achieve sustainable economic growth.
Additionally, the government allocated crude oil cargo in 2022 to pay civil servants’ salaries as a measure to alleviate the economic hardship faced by many citizens, especially government employees.
While changing the currency might seem like a quick fix, experts urge the South Sudanese government to address the underlying causes of inflation and foster domestic production for a sustainable economic recovery.