(JUBA) – The Bank of South Sudan has issued a new directive prohibiting the hoarding of both foreign and local currency as part of efforts to stabilise the economy and protect the value of the South Sudan Pound.
The directive, contained in Circular No. 3 and signed on 2 September 2025 by Governor Dr Addis Ababa Othow, sets out strict rules for individuals, businesses and financial institutions. It defines hoarding as the deliberate accumulation or withholding of large amounts of currency or commodities such as gold and other precious metals in order to create artificial scarcity, manipulate exchange rates, or influence market prices.
The Central Bank said the measure is intended to discourage speculative practices that undermine stability in the foreign exchange and goods markets. It also aims to ensure that currency remains in circulation, support government policies on exchange rate management, and help control inflation.
A key provision of the directive introduces a ceiling on cash holdings. Individuals or entities are only permitted to keep up to 10,000 US dollars, or its equivalent of 46,000,000 South Sudanese Pounds (SSP), outside the banking system. Any amount above this limit must be deposited into a bank account.
The circular applies to all licensed financial institutions, currency exchange agents, and individuals involved in currency or commodity trading. It prohibits transactions outside authorised banks, forex bureaus, and recognised currency exchange agents. Informal market dealings in currency and precious commodities are also banned.
Financial institutions have been tasked with implementing stronger controls. They are required to ensure transparency in all foreign exchange transactions, report excess foreign currency holdings weekly, and monitor customers for suspicious accumulation of funds. The rules also oblige banks and other licensed institutions to maintain strong Know Your Customer and Anti-Money Laundering controls, while providing full cooperation with Central Bank inspectors.
The directive outlines penalties for those who violate the rules. These include seizure and forfeiture of hoarded assets, fines, suspension or revocation of licences, freezing of accounts, and possible criminal prosecution which may include imprisonment.
To enforce the measures, the Bank of South Sudan will work closely with security agencies and other government authorities. Spot checks, compliance audits, and market surveillance will be conducted, and sanctions against offenders will be published to serve as a deterrent.
The public has been urged to avoid hoarding practices and to report suspected cases to either the Central Bank or law enforcement agencies.
The circular took immediate effect and will remain in force until reviewed or revoked by the Bank of South Sudan.
Bank of South Sudan – Circular No. 3 (Effective 2 September 2025)
Subject: Prohibition of Currency and Commodity Hoarding
| Category | Regulation / Provision | Details |
|---|---|---|
| Definition | Currency Hoarding | Deliberate accumulation or storage of excessive foreign or local currency outside the banking system to create scarcity or speculation. |
| Commodity Hoarding | Withholding of essential goods such as gold and precious metals to create shortages and manipulate prices. | |
| Cash Holding Limit | Maximum allowance | USD 10,000 or SSP 46,000,000. Any amount above this must be deposited in a bank. |
| Scope of Application | Covered entities | Licensed financial institutions, currency exchange agents, individuals involved in currency or commodity trade. |
| Prohibited Activities | Illegal practices | Hoarding of currency or commodities, informal (black market) transactions, speculative accumulation of foreign currency, transactions outside authorised banks and forex bureaus. |
| Financial Institutions’ Obligations | Reporting | Report excess foreign currency holdings to BoSS weekly. |
| Compliance | Maintain strong KYC and AML controls; monitor suspicious funds; ensure transparency in forex transactions; cooperate with Central Bank inspectors. | |
| Penalties | Asset seizure | Hoarded currency or commodities may be seized and forfeited. |
| Fines | Monetary penalties imposed by the Central Bank. | |
| Licence sanctions | Suspension or revocation of licences for banks, forex bureaus, money transfer operators, or SACCOs. | |
| Account measures | Freezing of accounts linked to hoarding. | |
| Criminal action | Prosecution under the law, including possible imprisonment. | |
| Enforcement | Market monitoring | Spot checks, audits, surveillance of forex and commodity markets. |
| Coordination | Central Bank to work with security organs and government agencies. | |
| Transparency | Public disclosure of sanctions against offenders. | |
| Public Role | Responsibility | Avoid hoarding, report cases to the Central Bank or law enforcement. |
| Effective Date | Implementation | Immediate (2 September 2025), valid until reviewed, amended, or revoked. |
