The South Sudanese pound has strengthened against the US dollar a day after the signing of the peace agreement.

$100, which was selling at about 1,700 pounds in the black market on Tuesday, has now reduced to 1,000 pounds.

However, a dollar is selling at 2.96 pounds, according to the Central Bank rates.

The rise in the rate of the US dollars after the conflict led to increase in market prices.

Ahmed Marjan, economic analyst and lecturer at the University of Juba, says the current improvement in the value of the pound is due to the feeling that the economy will recover when peace is achieved.

“People have seen tremendous appreciation in the value of the pound because people expect the economy to begin recovering immediately,” Mr Marjan told Eye Radio.

Mr Marjan added that the economy may continue to worsen if ‘no real peace is achieved’.