Africa-Press – South-Sudan. The Bank of South Sudan (BoSS) has announced it will auction 20 billion South Sudanese Pounds (SSP) to commercial banks on Wednesday, August 27, 2025, in a bid to tackle the country’s deepening liquidity crisis.
According to the central bank’s circular dated 25th August 2025, bidding will take place between 9:00 a.m. and 10:00 a.m., with adjudication set for 10:00 a.m. to 11:00 a.m. on the same day. Settlement of the auction will also be completed on Wednesday, meaning successful banks will have immediate access to the funds.
The auction is structured across three different maturities, or “tenors.” Of the total amount, 10 billion SSP is allocated for a 28-day tenor, 6 billion SSP for an 84-day tenor, and 4 billion SSP for a 336-day tenor. The corresponding maturity dates are September 24, 2025, November 19, 2025, and July 29, 2026, respectively.
The BoSS has also set a ceiling rate below 13%, tied to the Central Bank rate. In addition, an early termination penalty (ETP) of 25% of accrued interest will apply to banks that fail to hold their positions until maturity. Principal and interest will be paid at the end of each tenor.
This comes at a time when South Sudan’s economy is grappling with a severe shortage of cash. Many citizens and businesses have faced daily withdrawal limits and delays in accessing money from banks. The situation has slowed trade, strained public services, and left households struggling to cope with rising prices.
By injecting 20 billion SSP into the system, the central bank hopes to ease the cash shortage and restore confidence in the financial sector.
However, economists warn that unless structural problems — such as falling oil revenues and weak fiscal discipline — are addressed, the relief may be short-lived.
There are also concerns that releasing such a large sum could fuel inflation if not carefully managed. Prices of essential goods have already surged, and more liquidity in the market could further erode households’ purchasing power.
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