South Sudanese economist Dr. Abraham Maliet has called on economic institutions and researchers to conduct regular market surveys to better understand trading patterns and the factors driving commodity prices.
He said the exchange rate has remained relatively stable over the past week, with the US dollar selling at around 7,500 South Sudanese pounds. He contends the availability of dollars in the market has helped maintain the current exchange rate, while consumers continue to make purchasing decisions based on their purchasing power.
“For the last one and a half weeks, the dollar has been stable. One dollar is selling at SSP 7,500, and that indicates that there is availability of supply of dollars,” Maliet said.
The economist said competition among traders also affects where consumers buy their goods, with customers tending to choose shops offering lower prices. He says commodity prices, however, often increase when the dollar strengthens but do not immediately decline when the exchange rate falls.
“You bought the goods at a high dollar rate. The next week, the dollar drops. The goods would still not be sold fully. So the trader wants you to sell at that high price so that they can recover the cost,” he explained.
He says traders also anticipate possible future increases in the dollar rate and may maintain higher commodity prices as a result.
According to Maliet, traders are primarily driven by profit and will adjust their business decisions according to what they believe will generate returns.
“Traders are not for the community; they are for the profit. So whatever guarantees profit for them, that’s what they’ll go for,” he said.
The economist urged authorities and economic researchers to regularly survey both consumers and traders to better understand price movements.
He said such surveys would provide policymakers with evidence on how exchange-rate fluctuations affect businesses and consumers.
“We need to go back to the consumers, ask them a few questions, and also we need to do market surveys… so that they know why this is there,” Maliet said.
His call comes amid continued concerns over high commodity prices and the cost of living in South Sudan, where the exchange rate and imported goods remain important factors in determining market prices.
and then