Tall inflation instability can damage financial development through dropping consumers’ purchasing power.
This causes doubt, leading to higher interest rates in life-threatening cases. It also leads to a collapse in Worth of an exchange as it happens in some other nations, which is why the condition in South Sudan is continuing.
This comes from the economic strategy disappointment that emerges when the policy makers do not realize quantified purposes as bureaucrats wished in the nation. Also, the government has not led a multi-sector policy to capture the monetary situation.
There are little or no direct foreign savings in the country that would pump billions of dollars into the economy. And this should be the urgency for the government to attract more foreign savings in the country’s economy. However, there is a need first for the government to create an atmosphere that builds depositors’ sureness, lawfully, administratively, and safety wise.
The South Sudan system of producing revenue or non-oil revenues since liberation was not well designed as well as given importance. There was a lot of aid cash and oil was smoothly flowing, but nobody featured an effort to fostering the non-oil revenues sector. However, misconduct also made us not comprehend the consequence of both the oil money and donors’ aid.
This situation of inflation is due to lack of enough hard currency in the reserve as well as in the hands of dealers. The lack of enough hard cash source made it hard for the local pounds to be strong because there is not enough influx of the hard currency into the nation that comes with savings.
As the country got its independent in 2011, up to now good substructures in terms of roads connectivity, aviation system, water transport, and communiqué expertise are not consistent
Government should exercise more exertion to have what it takes in order to dose the financial condition in the country, otherwise the poor citizens are already in a quandary.
God Protect South Sudan
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