One of the world’s youngest countries, South Sudan’s has officially allowed its currency to float in response to the disparity between the official and parallel market. The currency which traded for 2.95 South Sudanese pounds to the dollar is now trading at 18 Sudanese pounds to the dollar, representing an 84% depreciation.
Just like Nigeria, the country has had to face currency pressures due to the decline in oil prices. Conflict in the country has also affected oil production and exports out of the country. Traders have found it hard to secure dollars required to fund imports into the country. It is expected that floating the currency will help reduce the demand for dollars and at the same time meet the demand of importers.