By Charles K Mark
The Bank of South Sudan (BoSS), has announced a new innovation intended to conduct money auctioning through an electronic system.
The new system replaces the old physical method that has been in use.
In a circular issued by the Central Bank, the technological development is said to be part of modernizing the banking sector in the country.
“The Bank of South Sudan is introducing the Electronic Foreign Exchange Auction System through the Refinitiv Financial platform of the London Stock Exchange Group,” the circular reads in part.
BoSS revealed that the system will allow regulated entities to participate in the foreign exchange auction market through its platform without physical presence.
Based on this communication, the Central Bank has directed all forex bureaus registered and operating in the country to have an active bank account with any one of the commercial banks already having the Refinitiv Financial Platform.
BoSS further outlined those banks that have already acquired the Refinitiv Financial Platform.
They are, namely, Bufalo Commercial Bank, Cooperative Bank of South Sudan, Eco Bank South Sudan, Equity Bank, Ivory Bank, Kenya Commercial Bank, Kush Bank, National Bank of Egypt, and Stanbic Bank.
The Acting Director of the Financial Markets Department at the Central Bank, Peter Majok Chiengan, said the deadline for the current auction system is slated for April 24, 2024, after which the electronic system will take effect.
Early this month, the Governor of the Bank of South Sudan (BoSS), Dr. James Alic Garang, declared a total crackdown on unlicensed street money exchangers in an effort to enforce strict regulations and eliminate illegal foreign exchange trading in the black market.
In an initial order, the Central Bank gave forty-five (45) days for street money dealers to get registered and acquire an operational license for their legality.
However, Governor Alic stated that the central bank has noticed non-compliance from the black market dealers following the initial order issued for their registration.
“Following the successful completion of phase three and the forty-five (45) day grace period, the re-organization of the forex market has reached its final phase, starting on April 8, 2022,” the BoSS governor stated.
Dr. Alic emphasized that this fourth and final phase requires a more collective and coordinated approach as the Forex Taskforce cracks down on the illegal trading of foreign currency on the streets of Juba and throughout the country.
Quoting the Foreign Exchange Business Act 2012 and the Anti-Money Laundering and Counter-Terrorism Act 2012, Governor Alic highlighted that it is illegal to deal in forex trading without a valid license from the Central Bank.