The Central Bank of South Sudan has come up with a new policy to organize an informal foreign exchange market to avoid selling currency on the streets known as a blank market.
The new policy aims to streamline foreign currency trading to allow South Sudan to stabilize the currency market and to stabilize prices to allow the bank’s mandate which is price stability.
Speaking to journalists on Friday, the Governor of the Central Bank of South Sudan Doctor James Alic Garang said the bank will coordinate with other stakeholders to organize the informal market under umbrella traders selling foreign exchange across the city.
“The Bank will continue to direct additional foreign exchange both to commercial banks and forex bureaus, this is done to meet the needs of the Public, the businesses, and other stakeholders that participate in the foreign exchange market. The Bank of South Sudan with other stakeholders organizes the informal market especially the umbrella that currently sells hard currencies outside the overview of the central bank.”
The governor of the South Sudan Central Bank authorized the currency traders operating on the streets to temporarily operate only in four locations across Juba.
“To this end, currency traders operating outside the jurisdiction of the central bank are authorized to strictly operate in four locations across Juba and this will start on Monday, December 4, 2023.”
The locations for the currency traders selling under umbrellas include Juba along Equity Bank of Juba, National Credit Bank, Customs Main Market, Jebel Main Market, and Konyo-Konyo Main Market.
He added that in the four locations, unauthorized dealers can operate openly under shades for 10 days before the bank implements the second phase which will require dealers to operate only under the decent structure.
“In the meantime, and under phase 1 in the four designated areas, unauthorized dealers can operate in the open, under shades or an umbrella for a period of 10 days up to December 14, 2023.”
Doctor James explained that after the 10 days, all the unauthorized dealers should form groups or associations and wait for further directives from the Central Bank of South Sudan and obtain licenses as foreign exchange bureaus.
He emphasizes that the Bank of South Sudan will fully engage other stakeholders including the Juba City Council and law enforcement agencies to curb, and apply the full force of the law on noncompliance market participants.
All these measures are geared towards streamlining the FX trading while mitigating the elated currency risks, “he explained.”