BoSS to Punish Banks Using Unapproved Exchange Rates

(JUBA) – The Governor of the Bank of South Sudan (BoSS), Dr Addis Ababa Othow, has outlined plans to stabilise the foreign exchange market, expand digital financial services and take firm action against illegal currency trading.

Addressing a stakeholders’ meeting in Juba on Friday, Dr Othow said digital payments have now been recognised as official legal tender in South Sudan.

He urged commercial banks and mobile money providers to promote public awareness about the benefits of electronic transactions, which include reduced risks from cash handling, greater security and increased convenience.

He expressed concern about unregulated foreign exchange practices, such as parallel market auctions and unapproved book value rates outside the official framework.

Describing such activity as economic sabotage, he warned that any financial institution found involved would face severe penalties, including the loss of its operating licence.

“The world is moving towards digital finance. South Sudan must not be left behind,” Dr Othow said.

He called for strict compliance with BoSS rules, particularly on the official exchange rate and anti-money laundering laws, and confirmed that the Bank was stepping up supervision of the sector.

BoSS will continue to hold foreign currency auctions to help stabilise the market. Dr Othow said the Bank has disbursed South Sudanese Pounds (SSP) to commercial banks across the country to ease shortages for civil servants and the wider public.

First Deputy Governor Hon Samuel Yanga also addressed the meeting, warning banks that non-compliance with BoSS directives would have consequences. He confirmed that funds had been released to pay civil servant salaries and that hard currency auctions were in progress to ease market volatility.

The gathering was attended by senior BoSS officials, executives of commercial banks, telecom representatives and other financial sector stakeholders.