Dr. James Alic Garang, the Governor of the Central Bank of South Sudan Juba. December 17, 2023. (Photo: Madrama James/Eye Radio)

The Central Bank governor is calling on traders to reduce commodity prices in the market as the South Sudan pound gains strength against the United States dollar.

Dr. James Alic Garang said the government has observed that many traders are still reluctant to lower prices despite the improving exchange rate.

“The exchange rate is trending downward, but it has always [been] the case throughout the product market, prices tend to be sticky, and that should not be allowed to be the case,” he said during visit inspection at Konyo-Konyo market on Thursday.

“They have to adjust spontaneously. The exchange rate is declining, second, the product market is also behaving both in relation to theory and practice and that is, prices are trending downward.”

He stated that the businessmen who have previously hiked prices due to worsening exchange rate, must now bring down the costs.

Dr. Garang also said the government is determined to intervene in the currency market to combat price fluctuations caused by the current inflation.

“The government will be observing the behaviors of traders.  if they are in line with intended policies, we will clap, if they are not in line with what we want, we will resist and we will act within the confines of the law.”

According to the official Central Bank exchange rate posted on Friday, one US dollar trades at 1556 SSP and at around 2,000 SSP in the forex and commercial market.