Traders in Nimule town blame lack of small notes of South Sudan Pounds to the persistent use of Ugandan shillings in transactions.
Inyani Jackson, who chairs Nimule Traders Association, says traders find it difficult to sell goods at affordable prices without smaller denominations in circulation, Radio Emmanuel reported.He added that traders prefer selling commodities in Ugandan Shillings to import goods across the border avoiding problems with black market money exchangers.
Mr Inyani expected a quick and fair solution from the Government to address the situation if traders are to stop using Ugandan Shillings and other foreign currencies in their dealings.
He said it would very difficult to implement a ban from the Payam administration forbidding the use of foreign currency in Nimule shops.
Mr Inyani called for cooperation between Uganda and South Sudan to allow traders buy Shillings at reasonable rates to import good.
Nimule payam Executive Officer Ingofok Iruu said public outcry forced him to issue the directive for traders to use only South Sudanese Pounds in their dealings.
Open exchange of American Dollars and business transactions in Ugandan Shillings and other currencies are common in Nimule devaluing the South Sudanese Pound.
The use of foreign currencies in Nimule also fuelled illegal money exchange giving rise to numerous makeshift dealers seated under umbrellas all over the town.
Traders in Nimule charge prices in Ugandan Shillings and convert it into South Sudan pounds at a miserable black market rate.
The rate of one South Sudan pound dropped from 750 Ugandan Shillings late last year to 450.