I'm trying to read the crystal ball of SSudan.
- SSP devalued a few weeks ago.
- $1 Billion reserves to be used to defend the SSP devaluation as well as pay back foreign loans in 2-3 mths as per Sabuni Tisa (Treasury minister).
- Oil flow was supposed to normalize in 4-5 mths time.
Suddenly there is a coup...
Likely effects...
- FX reserves will burn out fast...
- Expensive USD aka USD rate spike on the cards and on the back of a devalued SSP and soon to be hammered SSP.
- Oil export to be crimped yet again.
- SSP as well as SS econ to take it in the chin very hard due to the 3 points above.
Likely outcome
- More devalution on SSP
- Interbank rate spike (strangled money velocity)
- Inflation spike yet again
- Econ growth on deflated tyres
-
Foreign loans non-payment. And IMF (debt collection Caesar) will be right on time to "help out" on restructuring the loans. Yes, by aiding with more loans and advising on more SSP delavuation!?!- SS CB will have one hell of an ugly fight with inflation, USD rate spike, SSP meltdown and liquidity drought.
**I have never seen a developing nation in the foreign debt trap pay up its loans. Sabuni Tisa is trying this stunt - got balls of steel this SS Treasury man.**
Losers as @vvs pointed out as well as the UG/SS border flourishing trade.
Winners money changers both legal and black market as USD drought bites hard forcing its rate to spike.
KE too is experiencing a restive period at the North toward SS... Perhaps same chaos agents pulling the strings.
Oil is a sticky biz just like hard drugs and arms trade due to their cartel nature

$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!