![]() There may well be some inflationary impact, but measured inflation and prices for imported goods have in any case fluctuated widely over the past four years. ![]() The shift in exchange-rate policy has so far provoked little reaction and no backlash, probably because few people had access to the fixed rate. When the South Sudanese pound was launched in mid‑2011, when the country gained independence, its value was SSP2.75:US$1. Abandoning the fixed rate means that as of mid‑December the buying and selling rates advertised by the central bank were respectively SSP18.3:US$1 and SSP18.6:US$1, and banks and exchange bureaus were selling at around SSP20:US$1. However, in the past 12 months the gap between the official rate and the black-market rate has widened rapidly, providing ample opportunity for profiteering by officials able to buy hard currency at the official or commercial rate and then sell it on the black market. The Bank of South Sudan had previously maintained an official exchange rate of SSP2.95:US$1, providing limited amounts of dollars for sale by approved banks and exchange bureaus at SSP3.16:US$1. On December 14th South Sudan's central bank and Ministry of Finance announced that they were shifting to a floating exchange rate with immediate effect.
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