FILE PHOTO: Banknotes of the South Sudanese Pound (SSP).

A senior economic advisor has warned that South Sudan’s currency could reach one million pounds for 100 US dollars by the end of the year if urgent economic measures are not taken.

Abraham Maliet, a senior economic advisor in the Office of the Vice President for the Economic Cluster, said the exchange rate could continue to worsen if the government fails to intervene.

His warning comes after the black-market exchange rate rose to about 700,000 South Sudan pounds for 100 dollars this week.

Speaking to Eye Radio, Maliet blamed the weakening pound on increased demand for US dollars, low public confidence in the local currency, and weak domestic production.

“The main thing we are not producing. Productivity is less. So, you don’t expect your currency to be strong. Because what do you sustain? What do you support with? There’s nothing. So, these are the main reasons why we are not able to sustain the strength of oil,” he said.

Maliet said he had earlier warned that without clear intervention, the pound could continue losing value.

“And I did predict a couple of months ago that without a clear intervention, the pound is likely to lose 100% of its value. Now we are at 700. Maybe in September, it will go to 900. Maybe at the end of the year, it will go to 1,000,000. Unless the dream of having elections is fulfilled,” he said.

Maliet said many businesses and traders are now keeping their money in dollars because of fears that the South Sudan pound will continue losing value.

He added that the country imports more than it produces, creating constant demand for foreign currency and putting pressure on the local pound.

The economist said increasing oil production alone will not address the economic challenges facing the country.

Instead, he called for diversification of the economy through investment in agriculture, fisheries, mining, and other productive sectors.

Maliet also called for stronger coordination between the Bank of South Sudan, the Ministry of Finance, and other economic institutions to help stabilize the currency.

He said restoring public confidence and implementing economic reforms are essential to slowing the decline of the South Sudan pound.