DO YOU REMEMBER HOW STRONG THE SOUTH SUDANESE POUND ONCE WAS?

DO YOU REMEMBER HOW STRONG THE SOUTH SUDANESE POUND ONCE WAS?

Before the war that erupted in December 2013, South Sudan’s currency looked very different from what many people know today.
When the South Sudanese Pound (SSP) was introduced following independence in 2011, the official exchange rate was eventually fixed at roughly US$1 = 2.95 SSP
Think about that for a moment.

It wasn’t exactly 1 SSP = US$1, as is sometimes claimed, but the pound was still remarkably stronger than it would become in later years. IMF eLibrary
South Sudan had also entered independence with enormous economic potential, particularly because of its oil resources.

But problems had already started before the civil war.
In 2012, South Sudan shut down oil production for about 15 months during a dispute with Sudan over oil transit arrangements. Because oil provided most of the country’s foreign-exchange earnings, that decision put serious pressure on the economy and currency. Oil production resumed in April 2013. IMF eLibrary

Then came December 2013.
Political tensions exploded into civil war.
Oil production was disrupted again. Government finances deteriorated, foreign currency became increasingly scarce, and the difference between the official exchange rate and what people actually paid for dollars in the market grew dramatically. IMF eLibrary

So South Sudan’s currency story teaches us something important:
A country’s currency is not just a piece of paper.
Behind it are production, exports, political stability, confidence, government policy, and the strength of the economy.
South Sudan gained independence with extraordinary hope and resources.

The question today is
What would the South Sudanese economy and the SSP look like if the country had enjoyed uninterrupted peace since 2011? 🇸🇸