By Bida Elly David<\/p>\n
A serious government intervention is required as the war Sudan hits hard on South Sudan\u2019s free market economy, while black market speculators\u00a0take control of the foreign exchange market, an economic analyst noted. Marketers <\/b><\/p>\n
South Sudan is experiencing further hyperinflation following the political instability in Sudan which is an important neighbor helping the young East African country export its crude oil to the international market.<\/p>\n
The South Sudanese Pounds fell to a record low against the US dollars as 1 USD sales at 980 SSP in the parallel market while the Central Bank rate stands at 920 per $1, a drastic decline the economist tied to Sudan\u2019s one month war.<\/p>\n
Abraham Matoch, an economic analyst, exclusively told No.1 Citizen Daily Newspaper<\/em><\/strong> that government has totally failed to centralize the economy, leaving black market speculators to monopolize markets.<\/p>\n \u201cThis economic crisis will never stop until we decide to intervene into the market, to fix prices of the exchange rate,\u201d Matoch said.<\/p>\n The analyst cites challenges in cross border trade as a result of the war which attracts illicit trade.<\/p>\n \u201cIt is difficult for the current cross border trade to be stabilized because it is in a war situation where people run and smuggle goods.\u201d<\/p>\n Matoch observed that the conflict in the Sudan will totally weaken South Sudan\u2019s economic if the government doesn\u2019t intervene to strengthen the country\u2019s own economy,<\/p>\n \u201cThe crisis in Sudan especially in the border will have negative impact on South Sudan economy since there is no much control and trade will depend on smuggling\u201d he said.<\/p>\n Most impact of the free-market economy will be felt by the innocent people as the runaway inflation characterized by fluctuating exchange rate hikes market commodities prices.<\/p>\n Abraham said that with the on-going clashes in Sudan, trade at the border has been difficult to restrict since influx of the people is at a high rate.<\/p>\n \u201cThe cross-border trade is totally at risk since traders will be operating without system\u201d.<\/p>\n He said, \u201cthe current economic recession of the Sudan and South Sudan has got nothing to do with Central Banks rather depending on the stand of peace of the two countries.\u201d<\/p>\n Matoch blame black market dealers who trade on money as commodity.<\/p>\n \u201cThe government has no means to intervene into the market to stabilize and control prices. The dollar is already rising because there are people who are trading on both currencies.\u201d<\/p>\n \u201cWherever the money is a commodity, you expect prices to always go up indefinitely since there are no controls,\u201d he noted.<\/p>\n For South Sudan to gain and strengthen her economy, Matoch said \u201cthe only way is for president Kiir to persuade the two Sudanese conflicting parties to sit down and negotiate to find solutions for peace.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" By Bida Elly David A serious government intervention is required as the war Sudan hits hard on South Sudan\u2019s free market economy, while black market speculators\u00a0take control of the foreign exchange market, an economic analyst noted. Marketers South Sudan is experiencing further hyperinflation following the political instability in Sudan which[Read More…]<\/a><\/p>\n","protected":false},"author":2,"featured_media":13862,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[80,79],"tags":[],"class_list":["post-13861","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","category-news"],"jetpack_featured_media_url":"https:\/\/www.onecitizendaily.com\/wp-content\/uploads\/2023\/05\/mmmm.jpg","_links":{"self":[{"href":"https:\/\/www.onecitizendaily.com\/index.php\/wp-json\/wp\/v2\/posts\/13861","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.onecitizendaily.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.onecitizendaily.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.onecitizendaily.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.onecitizendaily.com\/index.php\/wp-json\/wp\/v2\/comments?post=13861"}],"version-history":[{"count":1,"href":"https:\/\/www.onecitizendaily.com\/index.php\/wp-json\/wp\/v2\/posts\/13861\/revisions"}],"predecessor-version":[{"id":13863,"href":"https:\/\/www.onecitizendaily.com\/index.php\/wp-json\/wp\/v2\/posts\/13861\/revisions\/13863"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.onecitizendaily.com\/index.php\/wp-json\/wp\/v2\/media\/13862"}],"wp:attachment":[{"href":"https:\/\/www.onecitizendaily.com\/index.php\/wp-json\/wp\/v2\/media?parent=13861"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.onecitizendaily.com\/index.php\/wp-json\/wp\/v2\/categories?post=13861"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.onecitizendaily.com\/index.php\/wp-json\/wp\/v2\/tags?post=13861"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}