So
here is an economics lesson. We
have an exchange rate that is 2.95 South Sudanese Pounds (SSP) to the US$. I am paid in US$, part of which I get
in cash. I can hitch a ride to the
market, wait in line at the bank and change money. Or I can go to the black market where I exchange at a rate
between 3.8 and 4.2. This black
market is actually more convenient (and safer) it's the UN drivers who want dollars and not pounds.
So
I thought I was cool taking part in arbitrage….Until I realized that I am a
culprit in the escalating inflation and lack of monetary stability.
Then
I started feeling guilty as I read articles about how the South Sudan Central
Bank is trying to double its foreign reserves and police starting arresting the
moneychangers in the markets in an effort to stem the inflation.
But the banks will not give locals US$. However, the locals need the US$ to send
to their families in Uganda to pay for their kids schooling because neighboring
countries won’t accept SSP. This is the dismal science, do help an individual in the short-term or the country in the long-term?
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