New Rules Target Speculative Forex Trading in South Sudan

(JUBA) – The Bank of South Sudan has banned currency hoarding and speculative foreign exchange activities with immediate effect under Circular No.1/BoSS/OoG/9/2026, issued on 18 September 2026.

The circular targets the deliberate accumulation, withholding and diversion of South Sudan Pounds and foreign currency from the formal financial system. The Bank said such practices could create artificial scarcity, distort exchange rate formation, undermine confidence in the national currency and add to inflationary pressures.

Currency hoarding is defined as the deliberate and excessive accumulation, withholding, concealment or retention of currency outside the formal banking and authorised foreign exchange system. Legitimate holdings for genuine personal, business or lawful purposes do not constitute hoarding.

Speculative foreign exchange activities include accumulating foreign currency solely for speculative resale, withholding it to influence prices, repeated transactions without legitimate economic purpose, dealing through unauthorised dealers, and using intermediaries to circumvent requirements.

With immediate effect, no person or entity shall hoard South Sudan Pounds to create artificial scarcity, manipulate exchange rates, engage in foreign exchange business without a licence, deal through unauthorised dealers, operate outside authorised channels, conceal significant holdings where disclosure is required, or undertake any other prohibited activity.

Licensed commercial banks must strengthen monitoring of significant cash movements, identify unusual patterns, ensure transactions go through authorised channels, maintain Know Your Customer and Anti Money Laundering controls, report suspicious transactions, keep accurate records and provide information to the Bank on request.

Licensed foreign exchange bureaux must operate within their licences, comply with Bank regulations, keep complete records, avoid unauthorised dealers, monitor suspect transactions and report suspicious activity immediately.

Regulated institutions must comply with reporting requirements for large cash and foreign exchange transactions. The Bank may set additional thresholds and formats. No institution shall facilitate concealment, splitting or structuring of transactions to avoid reporting.

Boards and senior management must ensure adequate internal controls to prevent unauthorised foreign exchange activities, speculative hoarding, market manipulation and circumvention of Bank directives. Chief executives and finance officers must monitor material currency exposures.

The Bank may require institutions to submit information on currency holdings, foreign exchange transactions, significant withdrawals and deposits, positions and counterparties. All submissions must be complete, accurate and timely.

The Bank said it will strengthen supervision and market surveillance, including on site inspections, examination of records, review of positions and investigation of suspected violations. It may coordinate with the Financial Intelligence Unit and law enforcement.

Violations may attract administrative sanctions, monetary penalties, licence suspension or revocation, restrictions on foreign exchange access, referral to law enforcement, seizure or forfeiture where authorised, and criminal prosecution. Individuals responsible may also be liable.

The Bank urged the public and businesses to use licensed channels, avoid unauthorised dealers, shun speculative practices, keep records and report suspected hoarding or manipulation.

All covered institutions must immediately review their cash management, treasury and foreign exchange arrangements. Those uncertain about a transaction’s status must seek written clarification from the Bank.

The circular supersedes any previous inconsistent directive on currency hoarding. It took effect immediately and remains in force until amended, replaced or revoked.

It was signed by Dr Addis Ababa Othow, Governor of the Bank of South Sudan, and copied to the Ministers of Finance and Planning, Petroleum, and Trade and Industry, the Financial Intelligence Unit, the National Revenue Authority, the Inspector General of Police and relevant sector regulators.