JUBA, July 5 (Xinhua) -- South Sudanese pounds has strengthened against the U.S. dollar, exchanging against the dollar at 250 from over 300, a week after warring parties declared permanent cease-fire deal, a government official said on Friday.
Minister of Trade, Industry and East African Community Affairs, Moses Hassan Tiel, told Xinhua by phone in Juba that the economy will recover if the local currency continues to rally against the dollar.
"South Sudanese Pounds (SSP) has gained strength by more than 45 percent in just less than one week. So if this trend continues, our economy will recover slowly as government revises long-term policies," Tiel said.
The Central Bank Governor, Dier Tong Ngor said on Friday the priority of the country's main monetary reserve is to support the importation of essential commodities such as fuel, food items and medicine.
Ngor said the bank has also cancelled all the applications for foreign exchange which were earlier sent to the Bank for approval in a bid to increase dollar inflows into the market.
"The public should also be informed that the bank will not consider any request for foreign exchange from individuals and private companies," Ngor said in a statement.
South Sudan floated the fixed exchange rate in December 2015 with no official foreign currency rate set by the government since then.
South Sudan's conflict that has now entered its fifth year which erupted in late 2013 after forces loyal to President Salva Kiir and his former deputy Riek Machar engaged in combat.
The 2015 peace agreement to end the violence was again violated in July 2016 when the rival factions resumed fighting in the capital, Juba, forcing Machar to flee into exile.
Millions of South Sudanese civilians have sought refuge in neighboring countries as the conflict rages on despite attempts by international players to end it.?