Bank of South Sudan to Auction SSP 20 Billion in Term Deposits Amid Economic Strain

JUBA — The Bank of South Sudan (BoSS) has announced plans to auction SSP 20 billion (approximately USD 200 million at current parallel market rates) in term deposits to eligible commercial banks this week, in a move aimed at managing liquidity and stabilising the financial system.

According to a public notice issued Monday, the auction will be held on Wednesday, August 13, 2025, with settlement completed the same day.

Interest plus principal will be paid at maturity, with tenors of 28 days, 84 days, and 336 days attracting allocations of SSP 10 billion, SSP 6 billion, and SSP 4 billion respectively.

The ceiling rate has been set below the Central Bank Rate of 13 percent, and an early termination penalty of 25 percent of accrued interest will apply to premature withdrawals.

This auction comes at a time when South Sudan’s economy is grappling with double-digit inflation, fuel shortages, and strained public services. Annual inflation was estimated at over 40 percent in July, driven largely by currency depreciation, high import costs, and disruptions to domestic production.

The local currency has been under sustained pressure, and commercial banks have faced liquidity challenges amid a slowdown in oil revenues — the country’s main foreign exchange earner.

While BoSS officials say the term deposit facility is a tool to manage banking sector liquidity and promote monetary stability, questions remain about whether the benefits will trickle down to ordinary South Sudanese.

Critics warn that without broader economic reforms, such financial interventions risk serving mainly the interests of a handful of well-positioned institutions.

“All bids from banks without the Refinitiv platform must be authenticated, scanned into a single PDF file, and emailed to BoSS,” the notice signed by Grace Araba Gordon, Director for Financial Markets Department, states.

The maturity dates for the deposits are set for September 10, 2025, November 5, 2025, and July 15, 2026, depending on the tenor selected.

Economic analysts say the auction’s success will depend on whether it helps tighten excess liquidity in the banking system without stifling credit to the private sector, and whether the government complements it with fiscal discipline and targeted investment in productive sectors.