John Akoon
Africa-Press – South-Sudan. The governor of the Bank of South Sudan Dr. James Alic released new measures to stabilise the foreign exchange market will see the tripling of foreign exchange auctions.
In a statement released on Monday, Alic stated that the market is entering into “high demand for foreign exchange due to the seasonality factors.”
“As schools open in the region, public demand for foreign exchange picks up which necessitates proactive measures,” the bank noted in a statement.
“The Bank of South Sudan wants to assure the market of its policy intention to swiftly intervene through Targeted short-term to medium policy measures,” Alic said.
According to him, the Bank will scrutinise the regulations and guidelines of the foreign exchange auctions to reduce the pressure on the domestic currency and stabilise the prices.
“The bank will review the current regulations and guidelines governing foreign exchange auctions. This policy direction is intended to reduce the pressure on the domestic currency, the SSP, and stabilize the general price level,” he explained.
Also, he stated that the bank would increase the frequency of the foreign exchange auctions three times with more foreign exchange resources.
“The Bank will increase the frequency of the foreign exchange auctions to three times, starting this coming week with more foreign exchange resources as deemed necessary.”
Dr. Alic further added that on the monetary policy, the bank will strengthen the capacity of deploying effective instruments targeting money supply through the issuance of more regulations and guidelines over liquidity management and reserve requirements.
The Central Bank governor, in the new measure, said the institution will work with the fiscal authorities to reintroduce short-term debt instruments with comparable returns.
“In collaboration with the fiscal authorities, the bank will re-introduce short-term debt instruments with commensurate returns,” he stated.
However, he warned that the bank would not tolerate unscrupulous action while pursuing new measures through a transparent, liquid, and efficient foreign market continuously.
“Given the BOSS’s objective to pursue a transparent, liquid, and efficient foreign exchange market continuously and vigorously, the bank reiterates it would neither tolerate unscrupulous actions nor hesitate to bring serious sanctions on offenders as it rolls out the new measures,” Dr. Alic warned.
Last year, Dr. Alic issued a directive to the foreign exchange dealers commonly known as the black market to formally obtain licenses and operate at the building or face a total crackdown.
Source: The City Review South Sudan
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