(JUBA) – The Monetary Policy Committee (MPC) of the Bank of South Sudan has announced a series of measures aimed at improving liquidity, strengthening foreign reserves, and modernising the financial system. The decisions followed the committee’s first meeting of 2025, held on 8 September and chaired by Governor Dr Addis Ababa Othow.
The nine member committee reviewed global and domestic developments before issuing its policy resolutions. Internationally, the MPC observed a slowdown in global economic activity due to geopolitical tensions, trade fragmentation, and persistent inflation. Global growth is now projected at 3.0 percent in 2025 and 3.1 percent in 2026, slightly higher than earlier forecasts.
Domestically, the committee highlighted liquidity challenges, limited data on consumer prices, and widening differences between reference and market exchange rates, even though the overall foreign exchange market has remained relatively stable.
To address these challenges, the MPC confirmed that the Central Bank will maintain a zero deficit financing policy. This measure is intended to reduce government borrowing from the Bank and to strengthen coordination between fiscal and monetary authorities.
The committee also reduced the Reserve Requirement Ratio (RRR) by 500 basis points. For deposits in South Sudanese pounds (SSP), the ratio has been lowered from 20 percent to 15 percent, while the ratio for deposits in United States dollars has been reduced from 25 percent to 20 percent. The Central Bank Rate remains at 13 percent. The move is expected to improve liquidity in commercial banks, enable them to meet daily withdrawal demands, and contribute to the build-up of reserves.
| Reserve Requirement Ratios (RRR) | Previous | New |
|---|---|---|
| SSP deposits | 20% | 15% |
| USD deposits | 25% | 20% |
The MPC reaffirmed its commitment to the Treasury Single Account Memorandum of Understanding, a tool aimed at rebuilding both domestic and foreign reserves. It also underlined the importance of working with the Ministry of Finance and Planning to establish a capital market in South Sudan. As part of this effort, the Central Bank plans to introduce Treasury Bills as an additional monetary policy instrument.
The committee announced further plans to promote digital payments to reduce reliance on cash, strengthen deposit mobilisation, and expand credit to the private sector. Improving statistical capacity was also highlighted as a priority, with the MPC calling for stronger support to the National Bureau of Statistics and better coordination among financial stakeholders.
The press release, dated 9 September 2025, stressed that these measures are designed to enhance stability in the financial system while supporting South Sudan’s broader development goals.
South Sudan Monetary Policy Committee (MPC) Concludes First 2025 Meeting
| Category | Details |
|---|---|
| Meeting Date | 8 September 2025 |
| Announcement Date | 9 September 2025 |
| Chairperson | Hon. Dr. Addis Ababa Othow, Governor of BOSS |
| Committee Members | 9 |
| Global Outlook | Growth projected at 3.0% in 2025 and 3.1% in 2026; slowdown from geopolitical tensions, trade fragmentation, and inflation |
| Domestic Observations | Liquidity challenges; lack of recent CPI data; widening gap between reference and market forex rates; overall forex stability |
| Zero Deficit Financing | Policy maintained to reduce government borrowing from Central Bank |
| Reserve Requirement Ratio (RRR) | SSP deposits: reduced from 20% to 15% USD deposits: reduced from 25% to 20% |
| Central Bank Rate | Maintained at 13% |
| Treasury Single Account (TSA) | Reaffirmed commitment to rebuild reserves |
| Capital Market Development | Plans to work with Finance Ministry to establish capital market and introduce Treasury Bills |
| Digital Payments | To be promoted to reduce cash use, mobilise deposits, and expand private credit |
| Statistics | Support and coordination for National Bureau of Statistics to improve data quality |
