South Sudan is in negotiations with Kenya and Uganda on how it can directly exchange its currency without using the US dollars.

The shortage of the US dollars has caused a rise in market prices for basic goods in the country.

In Juba, $1 is now selling at 8.8 pounds in the black market while the official rate is 3.16 in the commercial banks. This is the lowest value of the pound since independence.

A technical committee of the three countries will sit and determine the exchange rate of the pounds with shillings of the two countries.

“The Vice President is the one leading the negotiations to make the banks in Uganda and Kenya to be able to exchange South Sudanese pounds,” said Ateny Wek Ateny, presidential press secretary, “so that those who go and bring goods from Uganda and Kenya do not have to look for dollars.”

Mr Ateny says the negotiations will help reduce the amount of US dollars South Sudan is sending to East Africa.