The South Sudanese pound steadily dropped in value compared to the US dollar since the beginning of the week, with the rate now more than 14:1.
The government’s fixed exchange rate remains at less than four times that rate but most citizens and businesses are unable to access dollars at that preferential rate, which is reserved mostly for government officials and their relatives.
This past Monday prices around Juba stood at about SSP 13.3 for USD 1, but by the end of the week the rate stood at SSP 14.4 to USD 1.
Sources involved in currency trading said the political situation in the country especially anticipation that the parties will not sign a peace agreement by the 17 August deadline is at least partly to blame for the drop in the pound’s value.
Meanwhile, commodity prices have begun rising once again. For instance, the price of timber is higher than in July, with a 1′ x 12′ timber now costing 50 SSP compared to 40 SSP in June and July. The prices of 16mm rods have gone to 160 SSP, up from SSP 140 last month.