Home | News    Tuesday 27 November 2012

S. Sudan currency stable, despite delay in oil resumption

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By Julius N. Uma

November 26, 2012 (JUBA) - The local South Sudanese Pounds (SSP) has maintained stability against the US dollar, despite the delays in resumption of South Sudan’s oil production, shut down early this year.

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Kornelio Koriom, South Sudan Central Bank Governor addresses the media in Juba, September 11, 2012 (ST)

The local currency, according to a survey carried out by Sudan Tribune, is currently trading at 4.5 to the dollar compared to 5.5 two months ago.

In September, the local currency steadily gained value, after South Sudan Central Bank introduced certain strict measures as an intervention to a seemingly failed economy.

The strict measures, the Central Bank Governor told Sudan Tribune, involved inflation targeting as well as putting the dollar under tight control.

“We permitted the SSP to flexibly trade with local currencies of neighboring countries, created a credit line with corresponding banks and introduced a consortium of local and foreign banks to buy produce at reasonable prices,” said Kornelio Koriom.

“The Central Bank also had to place the foreign currency [Dollar] under strict control,” he added.

The steady gain in SSP, analysts say, followed the landmark agreement reach between Sudan and South Sudan on 27 September in Addis Ababa, Ethiopia. Several agreements were reached on key outstanding issues, including oil.

“The economic situation was worst before the 27 September deal Inflation was at highest, fuel was scarce and in short supply and the dollar was hard to obtain. But since then, the situation has been stable,” said John Madut, who owns a forex bureau in Juba, the South Sudan capital.

Oil previously accounted for 98 percent of South Sudan’s annual budget. Following its shutdown in January this year, however, the new nation had to turn to non-oil revenues to raise money for its economy, which heavily relies on imported food from its neighbors.

Hopes for resumption of oil flow hit a deadlock last week, after South Sudan announced it was postponing the plan, until it reached a meaningful agreement with Khartoum over security issues.

South Sudan President, Salva Kiir, said at Monday’s opening of the governors’ forum that negotiations are underway between the two countries to find ways of resolving the current deadlock on oil production.

“We are now negotiating with our neighbor. Last week, we sent a letter to Khartoum communication our readiness to discuss the Joint Political and Security Mechanism to resolve all these issue,” Kiir told the forum.

Kiir, however, said resources from oil would be directed towards service delivery, with specific focus on food security, through increased agricultural productivity.

In South Sudan, only 4% of the country’s arable land is effectively utilized for agricultural activities, yet the sector accounts for nearly 80 percent of economies of rural households.

DECLINE IN INFLATION

Meanwhile, South Sudan Consumer Price Index (CPI) decreased by 6.8% from September 2012 to October 2012, with decrease mainly driven by a decline in food prices, the national statistics bureau said.

Last month, annual inflation in Juba, according to the National Bureau of Statistics, was 27.9%, 35.5% in Malakal (Upper Nile) and 0.2% Wau (Western Bahr el Ghazal), compared to 21.5% for South Sudan.

(ST).

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  • 27 November 2012 07:17, by P.K.M

    Yes it’s the truth proven by the world market that South Sudanese pound hold the strongest position among world currencies. Its 3.5 pounds against the USA dollar! Sudan has to be ashamed of this news; a 1 year old country currency is more powerful than a 60 years old country! That has to hurt so badly.

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    • 27 November 2012 07:25, by Young Lotuko

      LOL Now what Sudan? Even tho South Sudan is doing poorly, its currency still doing great..Jalaby, what are u going to say now? And When our oil flow thru ur dry land, we are going to do just fine :)

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      • 27 November 2012 07:33, by zulu

        Jalaby is busy mourning the death of Beshir who is currenlty readmitted in Saudi hospital. Requiem, el Beshir

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      • 27 November 2012 08:49, by Northern Sudanese

        Young Lotuko
        yes south sudan is doing poorly, but how is currency going to save it??? even if what is said in the article is true, which according to statistics is not...

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    • 27 November 2012 08:47, by Northern Sudanese

      P.K.M
      too bad its not gonna save your 98% fucked up economy, why would we be ashamed? our neighbors are killing themselves to make life annoying for us lol .
      btw this article is full of BS, how can a currency be like this while 98% of economy is fucked? and don’t forget sudan economy is not weak but its sanctioned by US, give i a year or two and sudan currency will recover

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      • 27 November 2012 16:12, by P.K.M

        Northern Sudanese, the only way you would survive is for South Sudan oil to go through Sudan to Port Sudan and get paid fees; that’s all it is. How could you not know that South Sudan is the country that pays you for your economy to exist? Only the mentally-ill people are the one who mock their superiors. Good luck to you and your country.

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  • 27 November 2012 07:27, by wang

    P.K.M
    Some will hang themselves when they read this article

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  • 27 November 2012 07:32, by Paul Chadrack

    The era of Falsehood has gone,Kiir’s and his govenment must face the reality,they always say we started from zero?, if oil billions of dollars is starting from nothing?, now is where there is nothing but not when oil was still flowing.all our Neighboring countries started with out oil but they emerge very scucessful.this is a very good test for kiir’s government.

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    • 27 November 2012 08:17, by Ruach

      South Sudanese are still strong!

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  • 27 November 2012 08:01, by Jalaby

    HAHAHA, What do you really expect from idiot people who shut down their only source of food (oil) and begged others for feeding them!!
    Do you know why South Sudan is the country of corruption,theft,cattle raiding,tribalism,disharmony,etc?!
    Because the south lacks for the most important thing in building sovereignty nation which is the identity,

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    • 27 November 2012 08:11, by Jalaby

      the south lacks for patriotism and loyalty for the tribe only,any project that marches out of tribal concept framework & aspect its fate would be the ugly failure no doubt, the south people lack the feeling of belonging to the soil and land (land is defined through tribe boundary only)!
      The south resources are considered to be like prey and south authorities like hungry Hyenas

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      • 27 November 2012 08:20, by Jalaby

        that eat the flesh and the bone of the prey with no mercy and that’s because of the lack of patriotism feeling among them!
        The south is the country of outlaw since authority thieves are above the law and they ran away with the $4bn and the president of that country himself is helpless and can’t do anything to them other than watching them stealing more money!

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        • 27 November 2012 08:25, by zulu

          Jalaby, that is a fallacy. Patriotism when we unanimousely voted to secede and avow our african nationalism though we speak english or arabic. we do not shy to affirm our patriotism and nationalism. But you are tormented by shame towards your skin color. My kids, who are lightern you consider themselves african and most, south sudanese

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          • 27 November 2012 08:39, by Jalaby

            Zulu,
            I know your brain is so deluded and under great charming but I’ll make a flash back and take you to May 1983 battalion (105) Bor rebel to the time when the rebel about to start in 1983, do you know who attacked battalion 105 in Bor and just about to finish them completely? Dominic Kasiano (Equatorian - Azande) who led SAF army and entered Bor by force

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            • 27 November 2012 08:55, by Jalaby

              He almost finished that rebel and Kerubino and his Dinka army barely escaped the certain death because SAF jet fighters that suppose to arrive and clean the area from the rebel before they enter Ethiopia didn’t show up for a reason that I’ll explain later why they didn’t show up!
              Dominic Kasiano wasn’t alone when he crushed the rebel in Bor but got the full support of

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              • 27 November 2012 09:01, by Jalaby

                Mr. Joseph Tumbora (Azande), the governor of the south Sudan region at that time, Joseph Lagu and all other Equatorians because the conflict at that time not between North-South but between South-South, particularly between Dinka under the leadership of Abel Alier and Equatorians with some other tribes under Joseph Lagu leadership over who shall dominate the south,over dividing

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                • 27 November 2012 09:11, by Jalaby

                  the south into 3 regions:Equatoria (Dinka compose only 5% and majority are Equatorians), Upper Nile (Majority are Nuer, Dinka come second and then Chulluk), Bahr el Ghazal (majority are Dinka), by dividing the south into 3 regions Dinka will automatically lose their dominant over the whole south and only rule Bahr el Ghazal and that’s why Dinka stayed very strict over dividing

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                  • 27 November 2012 09:27, by Jalaby

                    the south into 3 regions and stayed behind Addis Ababa agreement which described the south as only one region!
                    Joseph Tumbora and his Equatorians group ran the 1982 election under the slogan of "dividing the south into 3 regions" and that was under Joseph Lagu guidance and they won 61 seats, in the other hand, Clement Ambro group and their slogan was "The unity of the south"

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                    • 27 November 2012 09:35, by Jalaby

                      under Abel Alier (Dinka Bor) guidance and Dinka in general and they lost the election and got only 49 seats! Joseph Tumbora got the mandate of dividing the south into 3 regions and started the process of dividing it, Dinka under Abel Alier opposed completely the division of the south and encouraged battalion 105 in Bor to rebel (I promise you to come back one day and give you

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                      • 27 November 2012 09:45, by Jalaby

                        full detail about battalion 105 in Bor, what was it? how they started the rebel? who was leading them and how Garang joined them at the last moment?)!
                        The Dinka rebellion in May 1983 was actually against the democratic election that gave Joseph Lagu group the mandate to divide the south and it was never because of central government in Khartoum, it was about who dominates and

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                        • 27 November 2012 09:54, by Jalaby

                          rules the south!
                          You poor Zulu, you’ve to know your history and the root cause of the problem,you need to know first who is this man called Jalaby?
                          The root cause of the problem still there in the south, the same problem stays with no solution,who will rule and dominates the south,the tribalism and ethnic superiority are living there with people just waiting for the big bang!

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        • 27 November 2012 08:29, by Jalaby

          As Joseph Lagu said it long time ago in 1982 when Dinka under Abel Alier brought his government down in Juba "We as southerners have nothing in common that relates us other than our black color and Dinka should leave Equatoria land"
          Hatred to north is the only thing that unite them therefore north should stay their eternal enemy "even falsely" forever to unite them!

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      • 27 November 2012 08:29, by Mike

        Jallaby
        you are always arat who doesn’t know what to say and remember nothing u should be conceited of urself, the so called Arabs,when your fellow muslim are not regarding you as muslim but Brotherhood in islam, u should be ashame of the rejection and racism the Arabs in the middle East are denouncing you.
        we as south sudan shall replicate the prosperity with out doubt.

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      • 27 November 2012 08:40, by Ruach

        Jaligayster
        That is a big problem to you to view the whole country as idiots! Why don’t you specify some individuals as idiots like you did to me yesterday calling me monkey? You are an idiot of idiots!

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        • 27 November 2012 11:03, by Jalaby

          Monkey Ruach,
          I believe you like my discussion of yesterday and you becAme very convinced that you belong to Homo Erectus monkeys clan rather than human,did u check ur DNA?
          Since you said you’re H2O engineer then my car is waiting for you to be washed,absolutely my big banana will be your prize as usual you little monkey! LOOOOOL

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          • 27 November 2012 13:36, by Ruach

            What are you talking about Gay,suicide bomber,fake Arab,Homo Habilis,Terrorist,murderer,looter? I can’t even wash cars except my car.Tell me where do you get banana in your hot and driest desert?

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            • 27 November 2012 13:44, by Jalaby

              Monkey Ruach,
              LOOOOOL, How come you forgot my banana so quickly monkey?!
              Just wash my car and I’ll have it ready for you little monkey!
              LOOOL

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              • 27 November 2012 14:10, by Ruach

                Tell me Gaay,suicide bomber,terrorist,looter,Homo Habilis,when did you grow banana in your hot,driest desert?Where do u get to know banana? People are talking of South Sudanes pound to have been strong despite the loose of oil revenue after it was shut down last year due to the looting u enriched your driest hot env’ts!Have u made any climate change after looting for so many years?

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              • 27 November 2012 14:15, by Ruach

                Tell me Gaay,suicide bomber,terrorist,looter,Homo Habilis,when did you grow banana in your hot,driest desert?Where do u get to know banana? People are talking of South Sudanes pound to have been strong despite the loose of oil revenue after it was shut down last year due to the looting u enriched your driest hot env’ts!Have u made any climate change after looting for so many years?

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              • 28 November 2012 06:46, by 4Justice
          • 27 November 2012 13:43, by Thorbanat

            Jalaby,
            Since the Gaza Strip war between the Jewish-Palestina, you are so emotional. Please do not insult. Insult is the result of defeat and if you are defeated don’t insult because this forum is for sobber minds. The South economy is strong and will withstand any macroeconomic shocks compare to Khartoum which is prone and can collapse at any time. We don’t need to open the oil now.

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      • 27 November 2012 14:49, by Chol

        Jalaby, the era of divide and conquer is long gone, no any piece of single history you can tell would take us back to those days. You have already lost South Sudan; the most valuable part of Sudan, but that’s even not enough to other Sudanese; Darfur and Nuba Mountain are following the same pursuit. South Sudanese are no longer South Sudanese you knew; but sophisticated generation!

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