JUBA, Nov. 15 (Xinhua) -- Increased oil output will boost oil revenue and help South Sudan in its economic recovery process, head of the country's central bank said Thursday.
Dier Tong Ngor, Governor of the Bank of South Sudan, told reporters that raising oil prices and the recently signed peace agreement will enable the conflict-torn country to widen its revenue base and increase its dwindled foreign reserve.
"All key economic indicators and the peace deal mean that oil production will continue to increase. With the improving international oil prices, we are able to build foreign exchange reserves to meet market needs," Ngor said.
According to the World Bank, South Sudan is the most oil-dependent nation in the world, with oil accounting for almost the totality of exports, and around 60 percent of its gross domestic product (GDP).
But after the young nation descended into civil war in late 2013, oil production declined from 350,000 in 2011 to less than 130,000 barrels amid soaring inflation and economic crisis.
Since the start of the conflict, the value of the South Sudanese pound (SSP) have depreciated and prices for goods and services climbed sharply, making life difficult for ordinary citizens.
Ngor said resumption of oil production in the northern parts of the country will bring in much-need foreign currency to support import of essential commodities and stabilize the economy.
"Given the increase in oil production and oil prices, we will be accumulating more foreign exchange reserves that will meet the foreign exchange needs in our country, we are very certain about that," Ngor said.
