DOWNLOAD APP: Download JUBAECHO mobile app now available on play store & coming soon to app store.

Central Bank restricts commercial transactions in foreign currencies

The Governor of the Bank of South Sudan Johnny Ohisa has prohibited public institutions and private sector from undertaking commercial transactions in foreign currencies.

 “In this circular its strictly prohibited for any institution, official or private within the legal jurisdiction of the Republic of South Sudan to denominate its commercial transactions in any currency other than the SSP,” said Ohisa in a circular issued in Juba on Wednesday.

It said rent fees from now onwards must be paid in SSP including for traveling, hotel, and entertainment services.

The list further includes services in high-end restaurants, commercial outlets as well as the private services contracts and monetary dealings.

Ohisa said that this circular is issued in accordance with provisions of section 11 of the Bank of South Sudan Act, 2011 empowering the bank to issue regulations and circulars to enable it to fulfill its mandate and responsibilities.

He said they are aware of some government and financial institutions, non-governmental organizations, civil society organizations, hotels industry, travel agencies, commercial outlets, restaurants, service entertainment industry and private businesses which are executing official and private contracts, rent payments in foreign currency and not in the South Sudanese Pounds.

Ohisa said such transactions are unlawful in South Sudan.

“This unacceptable practice has fundamentally undermined and threatened to erode public confidence in SSP as a legal tender and must be entirely discouraged,” he said.

“Intentionally refusing to deal in South Sudanese Pounds as a legal tender in the Republic of South Sudan is punishable by law. The SSP derives its legal standing as per the Bank of South Sudan Act, 2011 section 46,” he added.

He said that government institutions set to sign contracts with global contractors are urged to do so under the oversight of the Ministry of Finance and Planning.

“In view of this circular, hence, the following measures shall accordingly be adopted in line with this circular: designation of prices of goods and services , prices for all goods and services in the Republic of South Sudan shall be denominated in South Sudanese Pounds, unless otherwise stated,” it noted.

It disclosed that the public budget, financial records and accounts, required by any law or established or maintained in South Sudan, shall be assessed In SSP.

The central bank added that payment of monies when required in any indictment or legal proceedings other than for enforcement of a foreign currency obligations shall be stated in SSP.

“Mandatory payments shall be assessed and required to be paid in SSP. “Mandatory payment ” ” means any payment made to or by public utility under a contract or any other voluntary transaction; it includes payment of taxes (either direct or Indirect), customs duties, excise, levies, fees, charges, or penalties as well as any payment to public utility, payment according with the court of law or any payment prescribed by law under prevailing legislations,” it said.

Facebook Comments Box