(JUBA) – The Central Bank of South Sudan (BoSS) has issued a formal warning to all licensed commercial banks and non banking financial institutions over what it described as unfair foreign exchange practices involving digital transactions.
In a circular dated 29 September 2025, the Central Bank said it had observed that some institutions were charging higher rates for foreign currency when transactions were conducted through electronic money platforms compared to physical cash exchanges.
The Bank said the difference in pricing was unacceptable and risked causing instability in the financial system. It noted that such actions could damage public confidence in both the national currency and the banking sector.
Under the new directive, banks are required to maintain the same rate for all foreign exchange transactions whether conducted through electronic platforms or in physical cash. The Central Bank said this was necessary to ensure order in the market and protect consumers.
The warning came with a strong set of penalties for any institution found violating the order. These include financial fines, suspension or removal of senior managers, and possible revocation of banking licences.
The Bank said the directive takes effect immediately and that full compliance will be strictly monitored.
| Item | Possible Penalty |
|---|---|
| Charging different FX rates for cash and digital transactions | Heavy fines |
| Continued violation | Suspension or removal of senior management |
| Serious breach | Suspension or cancellation of banking licence |
The Central Bank has in recent months increased efforts to stabilise the exchange rate market. One United States Dollar currently trades at roughly 7,100 South Sudan Pounds, meaning a rate difference of just 50 SSP is equal to around 0.007 USD per unit, which adds up significantly in bulk transactions.
The regulator said it aims to reduce speculation and ensure transparency as more South Sudanese shift to digital payments by enforcing a single foreign exchange rate across all platforms.
| Details | |
|---|---|
| Issuing Authority | Bank of South Sudan (Directorate of Supervision and Financial Stability) |
| Date of Directive | 29 September 2025 |
| Targeted Institutions | All licensed commercial banks and non banking financial institutions |
| Main Issue | Charging higher foreign exchange (FX) rates on electronic money (E-Money) transactions compared to cash FX transactions |
| Central Bank Position | All FX rates must be equal for both digital (book value) and cash transactions |
| Reason for Action | To prevent market distortion, protect financial stability and maintain public confidence |
| Penalties for Non Compliance | Fines, removal of senior management, suspension or revocation of banking licences, or other actions |
| Effective Date | Immediate |
| Exchange Rate Context | 1 USD ≈ 7,100 SSP (September 2025) |