In an effort aimed at tackling the worsening scarcity of local currency, the bank maintained the initial 20% deposit requirement ratio for South Sudanese Pounds.
A meeting chaired by Governor Dr. Addis Ababa Othow reviewed a grim global economic outlook for the country, noting that the global economic environment is characterised by downward trends due to elevated risks and policy uncertainty amidst shrinking finance space.
In a statement dated 10th June 2025, the bank referenced the International Monetary Fund’s April 2025 economic outlook, which projected global growth to slow to 2.8% in 2025 from 3.3% in 2024, with global inflation expected to remain volatile.
The committee warned that South Sudan’s economy remains vulnerable amid continued geopolitical tensions, and in particular the conflict in the Gulf of Aden and Sudan, coupled with the US administration’s decision under President Trump to slash USAID funding.
The financial institution warned that a reduction in foreign aid “will have profound negative impacts on the developing and emerging economies, especially the nascent economy like South Sudan that depends on the USAID budget to support critical social sectors such as education and health.”
The committee decried the country’s economic dependence on a single export commodity, crude oil, underscoring that “the sharp decline of the oil prices in the international market will undermine the prospects of positive economic growth.”
As countering measures, the meeting agreed to a 200-basis-point cut to the CBR, designed to “spur and stimulate credit to the private sector and support robust economic growth” by making borrowing cheaper for commercial banks, encouraging lending to businesses and individuals.
Meanwhile, the increase in the RRR for foreign currencies, such as US dollars, Euros, or British Pounds, to 25%, aims to limit the circulation of foreign currency and to potentially stabilise the South Sudanese Pounds.
