BOSS to pump $5 million in the market to stabilise a staggering pound
The Bank of South Sudan (BoSS) will allow each commercial to keep no more than 10% of the $3 million set to be auctioned this week as financial regulators, which is the conventional method of attempting to keep the economy from exploding.
The old method, which BoSS has tried several times but does not appear to be working, is intended to prevent a staggering pound from slipping further.
Last week, the South Sudanese pound reached an all-time low, while the dollar reached an all-time high of $800.
Though the pound has been bullish against major currencies, from last Saturday, the Central Bank says it will be auctioning $5 million, out of which $2 million will be set aside for forex bureaus and get the rest to commercial banks.
“Auction process will be governed by the Bank of South Sudan’s Foreign Exchange Auction rules and procedures,” read a statement from the BoSS.
Grace Araba Gordon, BoSS Foreign Exchange Auction Supervisory Committee, acting Chairperson, said the auction will take place from Thursday, February 16, 2023.
“The maximum bid amount is 5% of the above-mentioned amount, or USD 100,000 per bidding application,” added the statement on the dollar cap for forex bureaus.
Last week, the bank directed all registered forex bureaus to display their exchange rates publicly to avoid hoodwinking customers.
The decision to pump more dollars into the streets comes at a time when BoSS gave a directive to all businesses and NGOs to start transacting only using the local currency, the pound.
“BoSS is aware of the increased demand for the US dollars for domestic payments by some public and private agents. This is illegal.
To relief (sic) the pressure on demand for the dollar, we strongly reiterate our commitment to enforcing the SSP as the only legal tender in South Sudan,” Boss said in a press statement dated February 10.