Two things that affect South Sudan treasury bill.

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There two things that affect South Sudan treasury bill (pound), which are first, the persistence conflicts and second, the financial mismanagements of currencies in the country.

If these two things are not rapidly solved, the economy will shrink and the GDP will drop below the standard requirement average, which shall continue to hummer economic growth in 2015-2018. In the beginning of separation, the treasury bill was robust. But after that, the South Sudan pound gradually decreases both in value against the U.S. dollar and the international markets’ exchange rates, which has spiraled up inflation. This drastic spontaneous decrease in a pound against the U.S. dollar and the international markets exchange rates will keep roaring the economic growth in South Sudan.

As the case maybe, the South Sudan reserve bank should apply monetary policy to restore pound from becoming worthless. Since this treasury bill is the only intrinsic legal tender that could be used to make the national payment. It is so important for running the government and funding national infrastructures such as roads, bridges, railways and other public and private constructions. I think without a proper regulation, South Sudan government will be subjected to currencies’ shortage to pay its bills in the near future and that may result into government shutdown.

Possibly, the best solution to control economy growth is to institutionalize financial sectors. This will improve financial responsibility among public and private institutions. With this in mind, South Sudan government should give space for competition among the institutions. Thus, through competition, all these institutions will create marginal incentives to hire expert citizens who will formulate business rules and regulations as safeguards unethical financial behaviors in handling currencies. Thus, the steps to handle conflicts and financial mismanagements will reduce inflation and increase GDP.

This is just a personal opinion.

Moses Juaach.

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