January 25, 2020 (JUBA) – The Central Bank of South Sudan will begin auctioning at least $2 million weekly to stabilize the country’s economy, a senior official disclosed.
- U.S. dollar notes (Reuters/Athit Perawongmetha Photo)
Speaking to reporters in the capital, Juba on Saturday, the Central Bank governor, Dier Tong said auctioning of hard currency started in December last year in order to stabilise the market during last year’s festive season.
“Every week, we are auctioning $2 million. Those who will win it will have the cash. They are supposed to go and sell it,” he observed.
According to the official, injecting hard currency in to the market will help control the economy of a country largely dependent on oil revenues to fund its annual budgets.
“The [U.S] dollar will come down and if the dollar comes down, it will have an impact on prices that will help the public,” said Tong.
South Sudan’s economy, which relies almost exclusively on oil revenues, has been affected by a drop in global crude prices.
Income from oil accounts for 98 percent of South Sudan’s budget.
In June last year, the Central Bank said it would start buying crude gold from local miners to boost the South Sudanese economy.