August 19, 2020 (Thessherald)–Due to years of political instability, corruption, and COVID-19, South Sudan has been plunged into an economic crisis, leading to a widespread depreciation of the South Sudanese pound against the US dollar.
Although South Sudan is among the most oil-rich countries in the world, the nation has suffered numerous setbacks and an economic downturn as a result of corruption and mismanagement in the oil sector.
South Sudan’s government and the opposition signed a peace agreement in 2018 that led to the formation of a coalition government, however despite the end of the violence, the state has yet to make efforts to generate finances through its natural resources.
Lack of transparency, compounded with mistrust between the parties, has made it nearly impossible for the international community and the region to allocate financial resources for the implementation of the peace agreement.
Earlier this week, an official at the Central Bank of South Sudan, Daniel Kech Pouch, admitted that the country had run short of foreign currency, which is critical to maintaining a reliable and stable store of value.
“It is difficult for us at the moment to stop this rapidly increasing exchange rate, because we do not have resources, we do not have reserves,” Pouch was quoted as saying.