S. Sudanese Pound depreciates as central bank restricts hard currency allocation
June 15, 2013 (JUBA) – The U.S dollar ($) has surged against South Sudanese Pound (SSP), after the central bank announced restrictions on the allocation of hard currency to commercial banks.
“Hard currency (U.S dollars) will be released to investors who will import essential items to the country,” Kornelio Koriom, the central bank governor said at a press briefing in Juba on Friday.
As of Friday, one SSP at Nimule border with Uganda dropped to just 480 Ugandan shilling, from 600 the day before.
The dollar, a trader told Sudan Tribune, was now selling at SSP 4.2 compared to SSP 3.8 a week back in the black markets.
“This is because the dollar is scarce,” said Simon Okot, a black market trader at Nimule border.
A dollar, at the commercial bank rate, goes for SSP 3.16.
The Sudanese government has given Juba a 60-day ultimatum to halt its alleged support to rebel groups fighting the former or it will close the main pipeline through which South Sudan transports its crude oil to international markets.
The central bank, however, downplayed the possible impact of the oil shutdown, saying “South Sudan’s economy will not collapse”.
The south took with it nearly 75% of the oil it previously shared with the north when it broke away from the latter in July 2011. Revenues from oil used to account for nearly 98% of South Sudan’s annual budget.
(ST).