(JUBA) – The Bank of South Sudan (BoSS) has awarded 2.5 million US Dollars in its most recent foreign exchange auction to commercial banks, as part of efforts to stabilise the local currency and absorb excess liquidity from the market.
The auction, conducted on 7 August 2025 by the Financial Markets Department, drew a strong response from the financial sector. A total of 14 bids were submitted by participating banks, out of which 9 were successful and 5 unsuccessful. The auction was oversubscribed, receiving bids amounting to 10.1 million US Dollars against a cover amount of 2.5 million US Dollars.
The amount of liquidity absorbed from the economy through this auction was 13,721,834,520 South Sudanese Pounds (SSP), which is approximately 2.98 million US Dollars based on the official exchange rate of around SSP 4,600 to 1 US Dollar.
The weighted average exchange rate for successful bids was SSP 5,487.27 per US Dollar. The highest bid received stood at SSP 5,499.99 per Dollar, while the lowest accepted bid was SSP 5,469.00. These figures reflect the ongoing pressures in the currency market, as the SSP continues to depreciate against the Dollar despite central bank interventions.
The bid to cover ratio was 4.04, indicating that the demand for US Dollars significantly exceeded the supply made available by the Central Bank.
| Auction Summary | Figures |
|---|---|
| Total Public Offering (USD) | 2,500,000 |
| Total Bid Volume Tendered (USD) | 10,100,000 |
| Number of Bids Submitted | 14 |
| Number of Successful Bids | 9 |
| Number of Unsuccessful Bids | 5 |
| Total Amount Awarded (USD) | 2,500,000 |
| Liquidity Mopped (SSP) | 13,721,834,520 SSP (~USD 2.98 million) |
| Highest Bid Rate Received (SSP/USD) | 5,499.99 |
| Lowest Bid Rate Received (SSP/USD) | 5,469.00 |
| Weighted Average Rate (SSP/USD) | 5,487.27 |
| Bid to Cover Ratio | 4.04 |
The Central Bank has intensified its use of regular foreign exchange auctions in a bid to strengthen the South Sudanese Pound and manage inflation by removing excess SSP from circulation.
These interventions are a part of the broader national monetary strategy to restore price stability amid ongoing fiscal challenges and limited hard currency inflows.
The outcome of this auction highlights the very high demand for foreign currency within the South Sudanese banking sector and also reveals the persistent imbalance between US Dollar supply and demand. The BoSS has not yet indicated whether the auction size will be increased in the future to meet the high level of interest from commercial banks.
The Bank of South Sudan urged market players to conduct transactions transparently and in accordance with regulatory guidelines to ensure the stability of the financial sector.
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