South Sudan expects the South Sudanese pound to improve further after doubling the monthly supply of foreign currency to financial institutions, central bank officials said on Friday. The currency of Africa's newest nation has sharply gained against the dollar on the black market this week, ending a slide since its launch after the country's independence in July.
South Sudan's main source of revenues and foreign currency is the sale of oil. It has contracted the sale of 22 million barrels worth $2.14 billion for the period July to October, according to the government.
On Friday, the pound was selling for 3.8 against the greenback on Friday, having traded over 4.2 a week ago, black market traders said in the capital Juba. "We doubled (supply) last week and the impact is already clear. About five days ago the rate on the street was about 4.25," deputy central bank governor John Dor Majok told Reuters.
"Yesterday it fell to 4.0. We are expecting it to fall further which means that we expect this rate to fall to 3.6 in the middle of November," he said.
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