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 is planning to auction 10 million United States dollars into the local market next week in an ordinary short-term policy to stabilize the skyrocketing exchange rate.

In a press statement, the Central Bank said the auction will be held through Term Deposit Facility Operation with interest on Wednesday, May 31st, 2023, and will end on the same day.

“The Bank of South Sudan intends to auction the sum of 10,000,000,000.00 SSP (Only ten billion South Sudanese pounds) to illegible banks through the Term Deposit Facility Operation,” the statement reads.

The pound has plunged to its weakest level since independence – with one U.S. dollar trading at over 1,000 pounds.

This has forced traders to hike commodity prices – making it harder for most families to survive.

The Bank previously said the sharp depreciation of South Sudan currency against the U.S. dollar is partly due to the country’s dependence on imports from the region.

However, on Friday, Central Bank Governor Johnny Damian Ohisa said the institution plans to finance the importation of essential commodities in a bid to bring down inflation.

Ohisa told reporters that the public should not panic because the government has enough hard currency reserves to address the current inflation in the market.

“The Central Bank is going to finance the import of essential commodities now. So, there is no fear we have enough reserve we are working closely with the Ministry of Finance to ensure that we have those resources available,” Ohisa said after meeting President Kiir on Friday.

He further said the Bank will intervene in the market through short-term solutions while exploring long-term strategies.