Zegabi

The Central Bank of South Sudan has revoked a decision it made earlier in the week, in conjunction with the Finance Ministry, to devalue the South Sudanese Pound following a directive from the country’s parliament.

On Monday, the Governor of the Central Bank of South Sudan announced a decision to devalue the South Sudanese Pound against all foreign currencies by about 34% in order to unify “the official and parallel exchange rates.”

The decision was reportedly also effected to control volatile pricing and suppress the black market as the country moves to attract foreign investments.

Following this announcement, prices of nearly all goods have shot up in the impoverished country, allegedly leading some outlets to close down temporarily.

In reaction to this, the country’s parliament summoned the Governor of the Central Bank Kornelio Koryom Manyik and the country’s Finance Minister Aggrey Sabuni on Tuesday to explain the reasons behind the exchange reforms.

The Governor of the Central Bank appeared before the parliament to justify for the reform yesterday, but requested more time to prepare a complete report as requested by the house.

He revealed that the reforms were effected in conjunction with the Finance Ministry and therefore the Finance Minister–who is currently out of the country on official duty–is required to explain certain aspects of the reform being handled by his ministry.

Nonetheless, the Governor was subjected to a barrage of criticisms as lawmakers measured the disruptive effects the currency devaluation has had on the entire country. The house then summarily passed a motion ordering the central bank to reverse the exchange reforms.

A majority of the goods on sale in shops across South Sudan are reported to be imported, giving traders the leeway to set prices based on speculations following the announcement of the exchange reforms.

Many shops across the nation are reported to still be trading with the new prices, despite the central banks announcement that the reforms have been canceled.

Meanwhile, several officials including South Sudan’s Information Minister Hon. Micheal Makuei Leuth have cautioned traders against unjustifiably increasing the prices of goods, as this is having a negative effect on the nation’s economy.

Photo by Reuters