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Troika Statement on South Sudan’s Decision to Adopt a Floating Exchange Rate
The Troika notes the December 14 announcement by the Bank of South Sudan that it would move away from a fixed exchange rate
The Troika notes the December 14 announcement by the Bank of South Sudan that it would move away from a fixed exchange rate, and to a market-determined exchange rate. The previous gap between the official and unofficial exchange rates for the South Sudanese pound (SSP) deepened the economic difficulties faced by so many South Sudanese, and was ultimately unsustainable. Allowing the pound to float should increase the availability of foreign currency for businesses and stabilize prices of many goods in the longer term. As the Government of South Sudan has stated, while there will be some immediate challenges, we believe this step should benefit the vast majority of South Sudanese over time.
The Troika welcomes this decision as a signal of the commitment by South Sudan’s leaders to charting a path forward on economic reforms. The exchange rate alone cannot support economic stability and will need to be matched by stronger public financial management, better and more targeted investments, and greater transparency and accountability to lead to a sustainable economy that provides opportunities for all South Sudanese. We continue to support the people of South Sudan as they seek a more prosperous and peaceful future.