South Sudan Economy Suffers Amid Violence, Low Oil Revenue; Now Threatened by Hyperinflation

Hit by falling oil revenues, South Sudan's economy is also troubled by a violent conflict that looks set to continue.
It could get worse in this young country, with the U.N. warning that South Sudan's economy is now threatened by rampant inflation as the central bank is allegedly printing money to meet a budget shortfall.
Toby Lanzer, the U.N.'s top humanitarian official in South Sudan, said at a news conference on Tuesday that since December South Sudan's government has resorted to the "old trick" of printing money.
Lanzer said in the capital Juba, "Printing money when there is nothing to back the value of that currency usually leads to hyperinflation."
South Sudan's economy has suffered since the outbreak in December 2013 of fighting between supporters of President Salva Kiir and renegade troops loyal to his former deputy. Several peace agreements have collapsed. Oil production facilities have been damaged in the fighting and some have fallen under rebel control.



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