Mamer Abraham
Africa-Press – South-Sudan. The Bank of South Sudan auctioned SSP17.5 billion in deposit auction tenor.
The exercise involved auctioning SSP 9.8 billion to five bidders for a 14-month tenure, SSP4.7 billion to 4 bidders for a 28-month tenure, and SSP 3 billion to two bidders for an 84 tenor.
According to the IMF, auctions and tenders are measures taken for allocating portions of Central Bank credit in several developing countries that use credit auctions along with central bank credit facilities as means of managing bank liquidity or short-term interest rates.
The tenor is a term used to refer to a loan or credit that the bank gives to the debtor that would be disbursed in a loan instalment by the borrower within the given number of months (tenor), which in this case are 14, 28 and 84 months agreed during application after which the credit is paid back with interest.
It is divided into two parts: deposit tenors and loan tenors, which operate in such a way that the longer the refund time, the greater the total interest the applicant pays to the bank.
The tenor of the deposit affects the interest you receive for storing funds in the bank.
BoSS had been trying its best to stabilise the economy by taming inflation and reducing the soaring foreign currency exchange rates. Yesterday, one dollar sold for 1006 SSP and was bought for 976 SSP.
The bank also auctioned $6 million to commercial banks and forex bureaus, of which $4 million was successfully auctioned to eligible commercial banks, and $2 million to forex bureaus.
Source: The City Review South Sudan
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