South Sudan’s apex bank is to inject USD 13 million into the market on a weekly basis.

The new governor of the Bank of South Sudan indicated on Tuesday that they would auction an enhanced amount of USD 13 million to currency bureaus and commercial banks on a weekly basis in order to prevent a run on the South Sudanese Pound (SSP).

To combat the surge in the dollar rate, Governor Moses Makur Deng said that the Central Bank raised the amount to be auctioned to forex bureaus from USD 2 million to $5 million and that to banks from USD 3 million to $8 million.

“The committee responded quickly,” Governor Makur said, “by boosting the frequency and amount of US dollars that we are pouring into the market.”

“We raised the amount to be auctioned to currency bureaus from USD 2 million to $5 million, and we increased the amount to be auctioned to banks from USD 3 million to $8 million.” As a result, we will infuse a total of USD 13 million every week to combat this temporary spike in the dollar rate.”

“We will continue to do that until the dollar is stabilized at the level we want it to be,” he continued. We know where we want it to go, and we will keep intervening. But, as I have said, the rate will begin to fall drastically as we reach the end of January. “

Unless there is speculative activity engaged, the higher the number of US dollars to be pumped into the market, according to the Central Bank president, would lower the dollar rate.

Unless there is speculative activity, Governor Makur stated, “the sum is too large for this market for the dollar to continue to rise.”

Concerning the increasing commodity prices, he excused the Central Bank, claiming that the institution was not responsible for managing market pricing and instead blamed it on a rise in taxation rates.