Established by the Bank of South Sudan Act of 2011, theCentral Bank of South Sudan is statutorily mandated to regulate the operations of all financial institutions in the country, including commercial banks. The Central Bank fulfills this mandate by issuing prudential guidelines and regulations as provided for under the Act. In theory, the licensed commercial banks are obligated to operate in accordance with these laws and guidelines, but many suggest this is not happening.[1]
Prior to 9 July 2011, whenSouth Sudan attained independence, banking operations in the country were controlled and governed by theBank of Sudan based inKhartoum. TheSudanese central bank operated branches in South Sudan in the cities ofJuba,Wau, andMalakal. The legal tender was theSudanese Pound. Beginning in 2005, with the signing of theComprehensive Peace Agreement (CPA), most of the Sudanese banks operating in South Sudan began to close operations. Also, as part of the CPA, the three branches of the Sudanese central bank located in South Sudan became known as theBank of Southern Sudan, from January 2005 until July 2011. Bank of Southern Sudan was headquartered in Juba, with branches in Wau and Malakal. It is estimated that the total Sudanese currency circulating in South Sudan was valued at approximately US$700 million, as of July 2011.[2]
Once South Sudan became independent, theBank of Southern Sudan rebranded to the Central Bank of South Sudan, the central bank in the country and the national banking regulator. Nine days following independence day, the Central Bank of South Sudan released new currency notes of theSouth Sudanese pound, to be exchanged at par with theSudanese pound for a period of approximately sixty days.[3][4] In late July 2011, the period to exchange the old Sudanese currency notes was shortened to approximately six weeks, with 31 August 2011 as the last day for the activity.[5]
By independence day, the following commercial banks were operating in the country under license from the Central Bank of South Sudan:[6]
Banking in the country is under supervision and regulation of South Sudan'scentral bank, the Central Bank of South Sudan. The bank maintains headquarters inJuba, the country'scapital and largest city. It is responsible for monitoring monetary policies and ensuring price stability and a stable exchange rate. The firstgovernor of the central bank is Elijah Malok.[9]
In April 2017, Reuters reported that banks were running out of cash and exacerbating famine in the war-torn nation.
“If you go to the commercial banks, you do not find South Sudan pounds and dollars. They are all in the black market,” said Deputy Minister Mou Ambrose Thiik. He said a parallel economy had emerged and people were hoarding cash. Black market rates have reached £150 SSP to the dollar, up from £105 SSP in mid-February.[10]
No information is currently available about the operation of microfinance institutions in South Sudan.
There areinvestment banks,insurance companies,foreign exchange bureaux,finance companies andleasing companies operating in South Sudan. The role of the central bank in the operations of these businesses will become clearer as the laws governing their operations are publicized in the coming weeks and months.
