Collapsing Eceonomy

Bank of South Sudan to auction off 20 million US dollars

Juba – Following the free floating rate of the national currency against foreign exchange as set out by the goverment, the Bank of South Sudan (BSS) has availed USD 20 million to be given to commercial banks in an auction sale.

“The Bank of South Sudan will sell US dollars 20,000,000 (United State dollars twenty million) to eligible commercial [banks] through an auction to be held on Monday 21st December 2015” ~ announced the BSS

All the illegible commercial banks can bid for a minimum of USD 50,000 and with a maximum of not more than 20% of the 20,000,000.

All the commercial banks shall get the application forms and the Auction rules and procedures from the Central Bank premises in Juba.

Though it has been made clear by the goverment that the rate for SSP against foreign currency shall be a floating, it’s not clear what exchange rate will the Central Bank use to sell hard currency to the commercial bank. it’s not clear whether the goverment will sell to commercial bank with its previous official rate or use the new floating rate.

If the goverment will use the new floating rate, it mean that they will sell USD above 18.5 which will automatically push further the black market rate above 20 USD or go even higher than that.

Categories: Collapsing Eceonomy, Juba, News