banking

South Sudan's central bank cuts key lending rate to 12% from 15%

January 12, 2022

South Sudan's central bank has cut its benchmark lending rate to 12% for 2022, from 15% in last year

JUBA- South Sudan's central bank has cut its benchmark lending rate to 12% for 2022, from 15% last year, its Governor Moses Makur Deng said on Tuesday.

'The BoSS (Bank of South Sudan) has revised down the Central Bank Rate ... intended to reduce the overall cost of financing extended to private sector by banks and other financial institutions,' he said in a statement.

Deng, who was appointed this month, said the bank would introduce term deposit facilities in February to help it carry out Open Market Operations to regulate money supply and credit conditions.

He said the central bank had also managed to merge the country's many exchange rates into one, stabilising it at 432 South Sudan pounds per dollar as of Dec. 31.

In April, the central bank ordered commercial banks to start using one foreign exchange rate to reduce market distortions, as it sought to stabilise an economy reeling from the impact of the COVID-19 pandemic and years of war.

'The Bank ... would like to assure the public that it is prepared to intervene at any moment should there be an apparent market volatility, with a view to stabilise the market and thus curb inflation,' Deng said.

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