Bank of South Sudan has introduced new policy, injected 3 million US dollars into commercial banks to stabilize the economic and market exchange rate.
Bank Governor Dier Tong Ngor said twenty-two commercial banks working in the forex bureau have participated in auction deals. But, only 20 banks succeeded in accessing auction currency depends on the amount banks paid in exchange for auction notes.
Banks announced to auction foreign dollars to eligible forex bureau according to the rules and procedure. The minimum bid amount is 5% which equates to $100,000 per bidding application.
It is not the first time South Sudan auctioning currency to the forex bureau. In 2020, South Sudan banks actioned 2 million dollars every week to stabilize exchange rates against the US dollar.
Although the government has been injected money into the forex bureau, the local market exchange rate is not yet stabilized; the country is still suffering from constant and unpredictable economic inflation.
Hon. Tong says injecting money into the market is an additional strategy to stabilize economic depression. “the banks will auction 5 million dollars every week to enable traders to import commodities to the country.” Governor assured that currency auction would continue until the market supply sufficient resources achieve and leaders can take their good roles in the market stabilization.
“If the exchange rate is not stabilizing, the market might not be stable,” he echoed.
Last week banks of South Sudan announced the loan of $174.2 from IMF. An amount of 3 million dollars were allocated to forex auctioned to eligible commercials banks every week. And half of the loan money shall be used to pay civil servants’ salaries arrears.
According to banks, it will continue to publish officials’ exchange rates on its website to keep the public informed.