ALARMING-Central Bank USD rates shut off forexes

By John Agok

The country’s efforts to up-lift the economy have been shot down by the high rates the Central Bank is selling the USD to key financial players.

Commercials banks and forex bureaus have lamented the high rates by the regulating authority which they claimed was selling a dollar for 570 South Sudanese Pound (SSP) which was almost the same with the rates in the black market. “It is 57,000 SSP for 100 USD and for the forex bureaus are then forced to sell the same at 63,000 SSP for 100 USD to their customers, according to privy sources within the money market and key players.

In an exclusive interview with five major forex bureaus in Juba, they clearly said that they do not have interest in bids to apply for 2 million dollars as advertised by Central Bank because the rate of dollar through public auction stands at 570 SSP per dollar.

This evolution came as third and fourth in BSS public announcement.

They said that to be fair, at least 200 SSP per 1 US dollar will make it more convenient for them to buy from the government Central Bank.

According to Dahabshiil Management, “We are now comfortable since they have customers sending between dollar accounts, so there is no problem. The only affected ones are local forex bureaus which do not have systems to operate internationally, but for us we are operating globally and we have a system. If we buy at 570 per dollar, then at how much are we going to sell to our customers?” If need be, we can apply for 100 USD for 20,000 SSP and that will be affordable,” the management commented.

“We are meeting the international standard because we have a management system in place that sends and receives hard currency. So, we do not have a dollar problem,” the management added.

However, Rekamou Money transfer manager expressed disappointment of not being backed by the Central Bank to supply market with affordable dollar exchange rates.

Yai Ajith acknowledged that their company is still very weak and needs support from the Central Bank.

“We are still weak but we are eligible to apply if the Central Bank can give us hard currency, but for now, we do not have information about 2 million dollars put for auction process,” he said.

Meanwhile, the BSS Public Announcement advertised on Juba Monitor called upon 50 forex bureaus to bid 2 million Dollars auction to be held on 15th January 2021 with maximum bid amount which was 5% per 100 USD only per bidding application.

The document was signed by Foreign Exchange Auction Supervisory Committee. The efforts to get comments from the Central Bank proved futile by press time, and all known contacts remained unanswerable.

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