John Ohisa Damian, Governor of the Central Bank. | Courtesy.

The Bank of South Sudan has made a 50 percent reduction of the weekly auctioning of US dollars to commercial banks and forex bureaus.

The central bank used to auction six million US dollars to commercial banks and four million to forex bureaus.

But from this week onwards, it will be auctioning three million US dollars to commercial banks and two million US dollars to forex bureaus.

In a statement dated November 14^th, the Central Bank governor, Johny Ohisa Damina said the decision was based on the successful implementation of a new monetary policy known as the Term Deposit Facility.

He stressed that the policy has significantly contributed to the decline in the growth of the money supply to the desired target digit.

“The Term Deposit Facility (TDF) is currently performing well and has become a key instrument in steering short-term market rates, management of excess liquidity, encouraging the banks to focus on their mandate of financial intermediation, promoting the culture of saving, and providing the private sector to stimulate economic activities,”  Ohisa said.

He added that “with respect to other macroeconomic indicators, inflation continue to moderate and the growth in broad money has stabilized around the policy target.”

The bank said it will keenly be monitoring these changes and will continue to revise the amount of auctioning to forex depending on the market forces to meet foreign exchange demand by the business fraternity.