Pound’s value drops again, dollar traded at 550

JUBA – The South Sudanese Pound is once again losing value against the United States Dollar, after a week of relative strength against foreign currencies, according to several currency traders in Juba.

Earlier this month, the government announced that it was planning to introduce new currency mainly to force citizens hoarding money at home to seek banking system.

However, the announcement resulted in depreciation of pound because the hoarders scrambled into the market to change their money for foreign currencies as they are not willing to take their money into the banks.

The presidency would later dispute the new currency plan and said information minister and government spokesman Michael Makuei Lueth who made the announcement wasn’t told to announce what the presidency said was not even discussed by the cabinet.

Following that announcement, President Salva Kiir announced that the government was going to inject more currency into the market to stabilize the economy. This resulted in the Pound gaining more strength against Dollar dropping from SSP 700 to 380, per $1.

However, Speaking to Sudans Post this afternoon, traders said the dollar power against the United States dollar is again surging as $1 is traded for SSP 550, expecting further fall in the local currency value.

“The Pound is now losing value against USD. Now as I speak to you, it is traded at 550 which is expected to climb in the next few days,” the trader said.

Another trader said he doubts injection of more currency will reach the market because “it will be controlled by influential businessmen with ties to the government.”