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South Sudan’s foreign currency reserves can only last for a month, says Central Bank official

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June 23, 2016 (JUBA) – South Sudan has foreign currency reserves likely to last for only a month, a Central Bank official said amid warnings of a possible economy collapse.

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The newly issued US dollar notes (Source: FRB)

“The [foreign] reserves we have may cover only imports of only five weeks [from now],” John Dor Majok, the deputy Central Bank governor told Radio Miraya Thursday.

“After that [five weeks], there will not be any goods in the market," he added, but said the goods could be available in the country, yet the prices could be extremely high.

This is the first time Central Bank has public declared the depth of the economic crisis triggered by war in 2013 that led to reduction in daily oil output, coupled with decline in global oil prices. South Sudan relies on oil for 98% of government revenues.,

According to Majok, the current economic situation might not improve anytime soon

“The only thing that will salvage this situation is to get more dollars, work to make sure that oil production goes back to pre-crisis levels,” he said.

South Sudan produced about 240,000 barrels per day (bpd) in 2013, but that dropped to about 160,000 bpd at the start of the conflict in mid-December 2013. South Sudan pays Sudan $24 for every barrel produced and piped to the international market via Sudan. The 21 months war, fought by forces loyal to President Salva Kiir and rebels loyal to the first vice-president, Riek Machar ended through a peace deal signed in 2015 and formation of the transitional government of national unity in April this year.

The senior bank official, however, said the country’s peace accord has not rescued the ailing economy, warning of total economy crash and hyperinflation in South Sudan.

“We have to pray that prices on the world market should also rise," explained Majok.

The South Sudanese Pound (SSP) has depreciated since December 2015 when the Central Bank devalued the currency against the dollar. Currently $1 is about SSP50.

Majok, however, defended the Central Bank’s decision to float the exchange rate, but declined to take responsibility as the bank for the poor management of the economy.

The International Monetary Fund (IMF) recently warned of further deterioration of the economic situation in South Sudan, unless quick economic reform policies were adopted and political environment eased.

The international financial body, among other recommendations, argued that restoring macroeconomic stability in the young nation would require collaborative efforts from South Sudan and its development partners in changing policies and restoring political and security stability in the East African country.

(ST)

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  • 24 June 2016 00:15, by DENG GAI GATLUAK

    May the guide of destiny (God) save our hard earned sovereignty. I must confess that our sovereign integrity is immensely in dangerous. Albeit, what seems to be impossible in the face of humanity is definitely possible with the supreme being God.

    repondre message

    • 29 October 2017 08:43, by sirking79

      It’s appropriate time to make some plans for the future and it is time to be happy. I have read this post and if I could I wish to suggest you few interesting things or advice. Perhaps you could write next articles referring to this article. I desire to read even more things about it! The Bonding Code

      repondre message

  • 24 June 2016 01:12, by Mr Point

    Kiir made the country bankrupt to pay for a war to get rid of Riek Machar as Vice President.

    2 Years of civil war. 10,000 died.

    Now Riek Machar is Vice President. The country is bankrupt.

    Who supports Kiir for his achievement?

    repondre message

    • 24 June 2016 05:25, by Hardlinner

      Kiir lack of natural intelligent led us to this situation. He knew quite well that Riek was after money and also got backing from countless nuer militias who seemed to lack self consciousness. Had Kiir left Dog Riek to stay in his previous position, there would never have been any rebellion. Garang welcomed him back to SPLA in 2002 not because he was anything but to again support from his tribe.

      repondre message

    • 24 June 2016 12:52, by Nyesi Ta

      Mr. Point,

      None, but the Jenge supports Kiir Al Awiir with their cow dung brain thinking they are born to rule and are not responsible enough to rule responsibly. This has brought shame to the good name of Jieng wholistically.

      repondre message

    • 26 May 2017 12:23, by japan comp

      I know your expertise on this. I must say we should have an online discussion on this. Writing only comments will close the discussion straight away! And will restrict the benefits from this information. internet marketing services

      repondre message

  • 24 June 2016 02:14, by dinkdong

    Wow!! And Kiir and Riek are just sitting there "like Joseph on his wedding night" (Family Guy.) They should resign!

    repondre message

    • 24 June 2016 05:34, by Hardlinner

      you are damn right Dinkdong. people in south sudan need to regain their consciousness and realization. our thievery leaders have failed us badly. the economy is at it current situation because of their corruption and primitive systems. what they always contemplated in their minds are ways to cheat the public and steal money. they do not understand the fundamentals of running 21st century economy.

      repondre message

  • 24 June 2016 10:09, by jubaone

    Great,

    The country is at the verge of total disntegration and each state/ethnic group will find its own way. There is no better moment for Equatoria than now to break away and found a new country. Equatoria can survive on its own: it has the people, land, knowledge and sanity. Leave these jaang alone, they are a burden and only hamper our progress

    repondre message

    • 24 June 2016 16:46, by Nyesi Ta

      Jubaone,

      The Jenge play the blame game against Equatorians for having brought Kokora, but l would like to mention here that the urge for Kokora didn’t come out of the blue, and it is once again manifested from 2005 thru now that the Jenge behave like monkeys in a corn field and worse they r savagerious in behavior and would do anything a modern human wouldn’t do. It really a shame to RSS.

      repondre message

  • 24 June 2016 10:22, by Kerem

    I have for the first time seen the realistic comments today and this is what our disintegrated country needs. Both Riek and Kiir are the cause of all these problems and none of them could sacrificed his quest for money and other wealth

    repondre message

  • 24 June 2016 16:02, by Padiet Deng Alony

    Now no more cry, this is the consequences of baseless war imposed on South Sudanese citizens because of positions. people died in vain due to senseless war. no more money for people to fight on again everybody need to take his/her hoe and go planting crops for themselves.

    repondre message

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