World Journal of Law, Governance and Public Policy
Rethinking Currency Valuation: Charlie Anyamaâs Approach to Confront Stagflation in South Sudan Through Political Will
Abstract
Charles Anyama Kalisto
Let the Abstract begin from “ We’ve seen this before elsewhere We have seen this before elsewhere. Stagflation is not merely an economic phenomenon as many sees it; it’s a social catastrophe that quietly erodes livelihoods, destroys savings, discourages investment, and also weakens confidence in the state. This is a pragmatic experience we endure. In South Sudan, the persistent depreciation of the South Sudanese Pound (SSP) against the United States Dollar (USD) has become one of the defining economic challenges of the nation in the recent years. As natural as it could be, every rise in the exchange rate is quickly reflected in the prices of food stuffs, medicine, fuel, transport, rent, and nearly every commodity available in the market. Consequently, ordinary citizens bear the greatest burden while the purchasing power of their incomes diminishes by the day. This isn’t a thing to be celebrated; rather, it’s a catastrophe to be frown at.
A dangerous misconception has -since then-gradually become embedded in public thinking. Many citizens celebrate receiving hundreds of thousands of South Sudanese Pounds in foreign currency. To speak properly, for a meagre amount of foreign currency. Political actors and policymakers, too, often fail to appreciate the deeper implications of this trend. For instance, ex-changing a mere USD 100 for up to 770,000 South Sudanese Pounds or even more, should not be regarded as a sign of economic prosperity or financial advantage. Instead, it should be viewed as compelling evidence that the national currency has lost substantial value against its purchasing power. One may contend that these are rates at the black market but its worth reminding that the black-market rates actually speak louder on the currency performance of any nation. A relatively good economy is one that has the functioning of the black-market right within its grasp of control. This article offers to proactively invite South Sudan’s political leadership as well as Policymakers to reconsider how currency valuation is perceived and managed. Genuine political will is essential if the country is to arrest Stagflation and restore confidence in the South Sudanese Pound henceforth.