One U.S. dollar is exchanged for over 1,000 South Sudanese pounds in the forex market as of May 27th 2023. | File photo/Courtesy

The Bank of South Sudan said the rise in value of the United States dollar against the local currency is partly due to the hikes of interest rates by the US Federal Reserve.

The Central Bank said it is aware of the rising inflation and has accumulated enough foreign exchange reserves to enable it to occasionally respond to what it terms as “high volatility.”

The Bank said it has generated the foreign reserves through “successful” operationalization of the Treasury Single Account and money allocated to the country by the International Monetary Fund.

As of February 10, 2023, the official exchange rate for one US dollar was at SSP 776. But in the commercial banks and black market, a dollar sells at more than SSP 800.

In a press release on Friday, the Central Bank called upon licensed Forex bureaus and commercial banks to openly display their exchange rates.

The directive was issued to enable the public to deal with authorized dealers, rather than risking “with unreliable umbrella and streets dealers.”

“The Bank of South Sudan, in collaboration with the treasury reiterates its strong commitment to implementing the Revitalized Agreement reforms agenda of restoring macro-economic stability,” the statement reads.

The Bank criticized the use of US dollars for domestic payments by some public and private agents, terming it as illegal.

“To relief the pressure on demand for dollars, we strongly reiterate our commitment to enforce the SSP as the only legal tender in the Republic of South Sudan.”

Lastly, the Central Bank said it is monitoring developments in the foreign exchange market and will intervene with hard currency auction when necessary.