Black Market Thrives Amid Currency Scarcity in South Sudan

FILE- A man from South Sudan displays new currency notes outside the Central Bank of South Sudan in Juba, July 18, 2011.

JUBA - The black market for exchanging the dollar thrives in Juba, despite orders from the Central Bank of South Sudan to cease street exchanges amid rampant inflation.

John, a vendor at Custom Market, laments the impact of government regulations on his business, stating, "Even the registration alone, they talk of 500 to 900,000 SSP for the registration... So their life becomes very hard."

Another forex bureau owner, who requested anonymity, reveals reliance on the black market for essential transactions. "We have to buy from those in the black market... since we cannot access or we cannot get a way to the Central Bank of South Sudan," the owner explains.

John emphasizes the challenges of complying with government directives, stating, "Even if I go to Central Bank as an individual... I don't know the procedure... We get our dollars in NGOs, the companies who are paying their employees in dollars."

Angu Bonasa Khamis, a businessman, echoes the sentiment, describing the challenge of obtaining dollars through official channels. "To get dollars is very difficult... You get them just on the black markets and very expensive," Khamis remarks.

Brigadier General Carlos Dak, deputy police spokesperson, expressed unfamiliarity with recent arrests related to the black market, stating, "I've been away for a long time. I'm not up to date on what is going on."

The official exchange rate in South Sudan is 1,600 South Sudan Pounds to one dollar, contrasting sharply with the black market rate of 220 South Sudanese pounds to one US dollar.

South Sudan's decision to cancel crude sales for February and March exacerbated foreign currency scarcity in the country.