A senior official in South Sudan's ministry of finance has expressed support for the decision to float the South Sudan Pound's foreign exchange rate, ending months of dual rates which have contributed to inflation.

Peter Garang Angong, Director General for administration and finance at the ministry of finance, said he supported the decision announced yesterday by the minister and the central bank governor.

"If managed correctly, floating the exchange rate could go a long way to addressing South Sudan’s current economic difficulties," he said. "A floating exchange rate will incentivize NGOs and foreign investors to move more US dollars into South Sudan as well as increase government revenue, so doing away with fixed rate is better for business, development, and job opportunities."

Garang said that in the past, some individuals were able to receive US dollars at the old official rate of 2.96 SSP per US dollar, while most people bought dollars in the market at 17 or 18 SSP to the dollar.

"Following the changes on Monday 14 December, everybody should be able to access US dollars at a similar rate," he said. "The Central Bank has committed to make sufficient US dollars to those who want to sell or buy. The goal is to have one exchange rate from which everyone can benefit."

Garang explained that the government will now receive more pounds for every dollar, making it easier to finance the budget gap and ensure salaries are paid. He said he expects prices to stabilize and not increase further.

Meanwhile, Bloomberg Intelligence analyst Mark Bohlund said the previous fixed exchange rate wasn't sustainable and dropping it "was just a matter of time."

“This adjustment means that hopefully more dollars will come to the market and economic activity should fare better, there should be fewer hold ups in economic activity as you often have if there is too much of a discrepancy between the official exchange rate and what’s required from a supply and demand perspective,” Bohlund told Bloomberg.