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Former Bank Governor: “We are not alone in economic woes.”

Author: Chany Ninrew | Published: August 7, 2022

Moses Makur Den, Central Bank Governor speaking to the media in Juba on Tuesday, 11th Jan. 2022. Photo: Lou Nelson/Eye Radio

Former Governor of the Central Bank Moses Makur Deng blamed the high cost of living in the country, on global crisis like the geopolitical war in Eastern Europe and the Coronavirus pandemic.

In a press statement hours before he was sacked, Makur said the US dollar is appreciating against powerful currencies around the world including in Europe.

“Due to international factors, the USD is appreciating worldwide against major currencies such as Sterling Pounds, Euro and Yen,” said the press release dated 4th of August.

The South Sudanese pounds started losing value against the US dollars in June, leading to high prices in the markets which makes life difficult for many across the country.

The Central Bank is fighting inflation by auctioning hard currency in its reserve to Forex bureaus and commercial banks.

In July alone, the Bank has auctioned nearly 50 million US dollars to commercial banks, as a measure to stabilize the skyrocketing exchange rate.

Meanwhile, Makure released a statement on Thursday, saying the economic distress is caused by the Russia – Ukraine war and resulting factors.

“The continuing war in Europe and the pandemic have rendered the global macro-economic outlook highly uncertain. Countries are facing unexpectedly high inflation including food inflation, supply chain disruption and demand-supply imbalances in products and labor markets,” he said in the statement.

“High interest rate in the US along with increased risk aversions among global investors have fueled safe haven demand and strengthened the US dollar.”

In June, the U.S. Federal Reserve increased its benchmark interest rate by 75 basis points to a range of 1.5%-1.75% — the biggest increase since 1994.

The decision was to discourage investors from taking loans and to limit the outflow of U.S. dollar from the Federal Reserve.

The decision strengthened the American dollar, which has surpassed the Euro currency for the first time in 20 years.

On Thursday, President Salva Kiir fired Moses Makur and the Minister of Finance and Planning Agak Acuil, under unclear reasons.

Makur is replaced with his First Deputy Johnny Ohisa as the acting governor.

 

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