The SPLM joint parliamentary and executive caucuses have directed the Central Bank to ‘double efforts’ to bring down the exchange rate of the Pound against US dollar.

In December last year, the Central Bank and the Ministry of Finance abandoned the fixed rate of the pounds against all foreign currencies, and allowed it to be determined by demand and supply.

The pound then shot up from 3.16 to 18.55 pound against $1 in the commercial bank. The pound continued to weaken until it reached 42 per $1 at the black market.

This led to the increase in prices of commodities in the market, including essential foodstuffs and fuel.

But now, the pound has strengthened to 28 while it is still selling at more than 30 against $1 in the commercial banks.

The SPLM caucuses met in Juba over the weekend to discuss the economy. The acting Secretary General of the SPLM, Jemma Nunu Kumba, says bringing down the exchange rate will stabilize the economy.

“The meeting directed the Central Bank of South Sudan to double its effort to bring down the exchange rate below reasonable rates to stabilize the economy,” Ms Nunu told the media.

Analysts often attribute bad economy to dependency on oil, which is almost the single export product of South Sudan and a major source of revenue for the government.

“The meeting also asked the government to diversify the economy of the country by exploring other minerals such as gold, iron, and other minerals and also to establish refineries in the country so that we will be able to refine our own oil to meet the domestic demand,” she added.

The SPLM has also agreed with other parties to the peace agreement to invite the International Monetary Fund to assess the economy and prepare a recovery program for the forthcoming government of national unity.