South Sudan opposition leader Lam Akol on Friday criticized the government’s decision to float the currency and abandon the fixed exchange rate, saying authorities need to release dollars into the market to lower costs.
In an interview with Radio Tamazuj, Akol said the policy to float the exchange rate was wrong and ill-advised. He said it will exacerbate suffering of citizens by leading to increased prices of consumer goods.
“What happened is there was high demand of dollars in the market. Government is supposed to release more dollars into market so that the demand can reduce, not to increase the official exchange rate,” he said. “Instead to taking such decision, they are supposed to release something 20 million dollars into market. They would have solved the issue.”
He called upon the Central Bank authorities to properly manage exchange rates in the market rather than raising them through auction.
The opposition figure said South Sudan’s economic situation is critical. He sid the urgent solution is to stop the war which contributed to a decline in oil production in South Sudan.
Authorities are set to auction off 20 million US dollars on Monday.
On Tuesday South Sudan’s finance ministry and central bank floated the exchange rate in an effort to harmonize the country’s dual rates. Previously, the dollar sold on the black market for about 18 SSP while officially it cost roughly 3 SSP.
Related:
Concern in Juba over high prices at Christmas (19 Dec.)
Economists support move to float SSP rate (16 Dec.)
South Sudan central bank allows floating exchange rate (15 Dec.)