MALAKAL, South Sudan — The continued appreciation of the United States dollar against the South Sudanese pound is intensifying economic hardship in Upper Nile State, with traders, businesses and residents reporting sharp increases in the cost of essential goods as the local currency continues to weaken.
The worsening exchange rate has placed additional pressure on household incomes, prompting renewed calls for government intervention to stabilize the foreign exchange market and ease the rising cost of living.
In Malakal, the capital of Upper Nile State, traders say 100 U.S. dollars now exchange for more than 680,000 South Sudanese pounds on the parallel market, with concerns that the rate could climb even higher if current economic conditions persist.
Economists and market analysts attribute the depreciation of the local currency to a combination of limited foreign exchange reserves held by the Bank of South Sudan, continued dependence on the parallel currency market and a shortage of U.S. dollars circulating through the country’s formal banking system.
They also point to the movement of foreign currency outside regulated financial institutions, where dollars are often held or transferred through informal channels instead of licensed banks and exchange bureaus, further reducing supply and increasing demand for the U.S. currency.
The weakening South Sudanese pound has translated directly into higher prices for imported goods, reducing purchasing power for consumers and making everyday necessities increasingly unaffordable.
Electronics trader Haroun Abdullah said businesses have been forced to raise prices as import costs continue to climb.
He explained that many customers can no longer afford basic consumer goods, adding that the rising exchange rate has significantly reduced commercial activity in Malakal’s markets.
Residents say the economic pressure extends well beyond retail businesses.
Thomas James, a resident of Malakal, said families across South Sudan are struggling to cope with escalating prices for food and other essential commodities.
He warned that the continued depreciation of the national currency is placing enormous financial strain on households while also limiting the government’s ability to provide essential public services.
Currency exchange operators have also expressed concern over the growing instability in the foreign exchange market.
Santino Joseph, who works at Al-Muhajir Exchange Bureau in Malakal, said exchange rates now fluctuate several times within a single week, creating uncertainty for traders, businesses and customers.
He urged the authorities to introduce urgent measures capable of restoring confidence in the currency market and reducing volatility.
Import-dependent businesses say they are among those most affected by the currency crisis.
Mobile phone dealer Banga Najm al-Din said the stronger U.S. dollar has sharply increased the cost of importing electronic products, forcing retailers to transfer the additional costs to consumers.
He also suggested that the concentration of import activities among a limited number of foreign traders, together with the hoarding of certain products, may be contributing to market instability and higher prices.
Other residents echoed similar concerns, saying the rising cost of living has made it increasingly difficult to purchase food, household supplies and other essential items.
Despite the worsening situation, some exchange bureau operators remain hopeful that government intervention could help stabilize the market and restore confidence in the South Sudanese pound.
The growing concerns from traders, exchange operators and residents underscore the mounting economic challenges facing South Sudan as the country’s currency continues to lose value against the U.S. dollar.
Without effective monetary reforms and stronger foreign exchange management, analysts warn that the rising cost of imported goods could further erode household incomes, weaken business activity and deepen the country’s broader economic difficulties.
