South Sudan Axes Central Bank Head, Unable to Control Inflation

Authored by Steve H. Hanke of the Johns Hopkins University. Follow him on Twitter @Steve_Hanke

Last week, South Sudanese President Salva Kiir once again dismissed the governor of its central bank, as South Sudan continues to struggle to bring down inflation rates. The official inflation rate for April 2018 was 83.9%. My most recent measurements put South Sudan’s annual inflation rate at 76.6%.

Comments

jm Wed, 06/13/2018 - 13:36 Permalink

Seriously, how do you conduct monetary policy in South Sudan?

The nomadic tent-dwelling shepherds want to know so they can manage their credit profile and liquidity.

To Hell In A H… Wed, 06/13/2018 - 14:08 Permalink

lol  I spoke about the South Sudanese currency under attack 3 weeks ago, despite no change in monetary, nor economic policy. These niggers and hybrids have zero public services of note, no social security and all mining and oil projects in private hands. This is Nirvana for the IMF. A poster child for neo-liberalism.

What was their crime? They turned on a certain country recently, begging not to be raped by their offspring and to treat Sudanese citizens more favourably inside the host country. Then BAM! currency goes to the shitter.

Benjamin123 Wed, 06/13/2018 - 15:54 Permalink

They should adopt the cfa franc. Its well managed from Paris, apparently. The african countries that use it dont experience wild hyperinflation episodes.

To Hell In A H… Benjamin123 Wed, 06/13/2018 - 16:18 Permalink

lol The Central African Franc? Well managed? Another arsehole who simply does not get it. Look up Thomas Sankara of Burkina Faso, what monetary system he wanted to leave, why he died, store it in the memory bank and soon you'll realise a pattern emerges, but I'll let you work out what the pattern is.

Both the West and Central African Francs are the biggest piss-take by far, in the world of FIAT currency. Alas, expecting more than 5% of the posters on ZH to know about African affairs is a stretch too far. Niggers and low IQ is as complex as it gets. History, contemporary policies by external actors and context is a distant 2nd.

In reply to by Benjamin123

To Hell In A H… HRH of Aquitaine 2.0 Thu, 06/14/2018 - 05:02 Permalink

OK Padawan.

  • Look up Thomas Sankara, the former president of Burkina Faso, his move to leave the CFA and his subsequent murder. 
  • Look at Equatorial Guinea. A typical African economy. They found a shit tonne of oil and Gas off their coast and their currency was shit. They were wooed by the French to join the CFA in 1985, despite being a former Spanish colony, where the citizens speak Spanish. Upon joining, they changed not one iota, or aspect of their economic policy. 
  • The question for you is, what defines a well run currency? Is it economic policy? GDP? Balance of trade deficits? Debt to GDP? Employment ratio etc? Well if you apply all the basic metrics, the African French Francs, should be in the shitter like most of the other African countries, but they are not and that is only 20% of the monetary disconnect when Africa is concerned.
  • Look/research the terms of the CFA and each individual country Central Bank has with the bank of France.  It's really opaque, hard to find and upon researching you are going to come across other stuff, you simply will not believe is true and even when verified by other sources, you will still shake your head in total disbelief. The terms for the CFA countries having to pay interest to borrow their own money, being one of them. Where the majority of the Foreign reserves of all 14 CFA countries goes and who's books they are counted on. The list goes on. 
  • Go ahead, start reading up in your own time and researching. Make it a 6 month journey. No rush.

In reply to by HRH of Aquitaine 2.0