BY DENNIS MARIAL MUORWEL
The problem of the USD are the few individuals who have hoarded South Sudanese Pounds. They panicked when they heard that the country was going to change the currency, and with new currency all maybe required to carry their old pounds to banks for exchange, although the value does not change they fear questions that may arise, why did you keep this huge amount of money at home? where did you get it from? which may lead to background checks. In summary, they feared being potentially charged of corruption or either loose the entire wealth.
These few individuals were the ones who rushed to the market to buy USD making the demand higher. Now that they heard again that there is no change of currency, today they are the ones who rushed their few USD they bought to be changed to pounds again making the USD supply higher and SSP demand lower which led to today’s rate of 45000 SSP per 100$. They actually felt a pinch of hoarding practices today. There enough evidence that South Sudanese refuse banking and keep money at home. Government should initiate Assets Registry of all the Government Officials and background check before issuing an order of returning the money to banks
MARKET PRICES SHOCK WILL REMAIN CONSTANT FOR ABOUT TWO TO THREE WEEKS
In economics, a shock is an unexpected or unpredictable event that affects an economy, either positively or negatively. Technically, it is an unpredictable change in exogenous factors that is, factors unexplained by an economic model which may influence endogenous economic variables.
However, the retail prices will remain constant for the next two to three weeks because they have procured from the whole savers at the raised or highest bidding. The government through the ministry of Trade should beep up market price monitoring through consumer price indexing on daily basis and monitor the goods that have been subsidised by the government by imposing flexible pricing due to the market flexibility rate of the USD since it’s going down.
The author is a human rights lawyer and former legal advisor to former governor of the defunct Eastern Lakes state. Follow him on Twitter here.
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