An economist has advised the government to stop floating the rate of the currency arguing that it gives room for more speculations.

Professor Abraham Matoc believes those with access to the hard currency have monopolized the economy by turning it into a commodity.

His comments come after a sharp decline in the value of the South Sudanese Pounds against the US dollar.

As of today, $1 is equivalent to 400 South Sudanese Pounds in the black market, while at the Central Bank, a similar amount sells at 164 pounds.

Most of the consumers have complained about a sharp rise in the prices of basic commodities in popular markets.

Traders have also raised concerns over their inability to access hard currency. They say they are unable to import more goods without hard currency.

Prof Abraham Matoc, the vice-chancellor of Dr. John Garang Memorial University, attributes the devaluation to the uncontrollable floating of the currency by the Central Bank.

A floating exchange rate is a regime where the currency price of a nation is set by the forex market based on supply and demand relative to other currencies.

This is in contrast to a fixed exchange rate, in which the government entirely or predominantly determines the rate.

“The free or floating exchange rate is not advisable, because it gives room to speculators to monopolize the dollar [since] the dollar has become a commodity,” Prof Matoc told Eye Radio on Wednesday.

Some economists say floating exchange rates sometimes better reflect the true value of a currency based on supply and demand.

However, they warn that floating also makes currencies potentially more volatile or unstable in value when the market and other conditions change unpredictably.