The economic
situation in South Sudan is going from bad to worse.
The South
Sudanese pound has dropped to its lowest level yet against the US dollar.
Currency
traders in the black market are exchanging at 8.5 pounds to the
dollar, while the official rate at banks remained 3.16.
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| A money trader displays South Sudan's currency |
Prices for
everyday food items are rising fast and traders attribute the increase directly
to the unfavourable exchange rate, which makes it difficult for them to import
goods.
Information
ascertained indicates the South Sudanese government is essentially bankrupt and
has decided to print more local currency, despite not having the US dollars
(USD) to back the printing of new South Sudanese pounds (SSP), which could
cause hyper inflation.