(JUBA) – The Bank of South Sudan sold $2 million in its latest foreign exchange auction held on 31 July 2025, attracting strong demand from the country’s commercial banks, which submitted total bids worth $12.1 million.
This sixth auction in the 2025 series drew participation from 14 commercial banks, though only four were successful in securing dollar allocations. The remaining ten were left out due to competitive bidding and rate cut-offs set by the Central Bank.
According to the auction summary, the total amount of South Sudanese Pounds (SSP) mopped up through the FX sale reached SSP 10.87 billion, equivalent to approximately $2.36 million at the official July 2025 rate of $1 = SSP 4,600. The auction is part of the Central Bank’s ongoing strategy to manage money supply and support currency stability.
The exchange rate bids from banks ranged widely, with the lowest bid submitted at SSP 5,200 per dollar and the highest at SSP 5,755.99. However, the allocation cut-off rate was set at SSP 5,410, with the accepted upper limit capped at SSP 5,500. The weighted average rate among successful bids was SSP 5,434.28 per dollar.
| Auction Indicator | Value |
|---|---|
| USD Offered | $2,000,000.00 |
| USD Bids Received | $12,100,000.00 |
| Number of Bids | 14 |
| Successful Bids | 4 |
| Unsuccessful Bids | 10 |
| SSP Mopped from Market | SSP 10,868,550,000.00 |
| Highest Bid Rate (SSP/USD) | 5,755.99 |
| Lowest Bid Rate (SSP/USD) | 5,200.00 |
| Allocation Cut-off Rate | 5,410.00 |
| Highest Accepted Rate | 5,500.00 |
| Weighted Average Rate (SSP/USD) | 5,434.28 |
| Bid-to-Cover Ratio | 6.05 |
The high bid to cover ratio of 6.05 illustrates strong competition among banks for scarce foreign currency, a reflection of persistent dollar shortages in the local economy. The rates accepted in the auction remain significantly higher than the official rate, indicating increasing pressure on the local currency.
Financial analysts have noted that the continued rise in auction rates could be an early signal of inflationary risks and limited dollar liquidity in the financial system. The rising cost of dollars, coupled with ongoing economic uncertainty, may further push up the cost of imports and widen the gap between official and parallel market exchange rates.
The Bank of South Sudan is expected to maintain regular FX auctions as part of its broader monetary policy toolkit to manage inflation, support the SSP, and maintain economic stability. However, observers suggest that sustained improvements will require more than short-term liquidity management, including reforms to boost exports, attract foreign investment and reduce reliance on imports.