South Sudan’s central bank on Monday announced setting the maximum limit for cash withdrawal at 36,900 U.S dollars in both commercial banks and mobile money platforms in the country.
The move comes amid record-high inflation following the halting of oil shipments to the international markets in February this year.
The South Sudan pound is currently exchanging 3700 with the U.S. dollar in the black market from the previous 5200 in early September, the highest since independence in 2011.
“The maximum limit of cash withdrawal across all channels at the Bank of South Sudan and all the commercial banks by public sector institutions, government spending agencies, private corporates, and individuals shall not exceed 10,000,000 SSP,” said Yeni Samuel Costa, the Director General of the Directorate of Banking Operations in the Bank of South Sudan in a statement issued in Juba, the capital of South Sudan.
Costa said that the cash withdrawal limits in the banking industry follow a new policy direction and coordination between the central bank and the Ministry of Finance and Economic Planning.
“Cash withdrawals exceeding SSP 10 million shall be either deposited through a bank account transfer within the banking industry or through interbank transactions, including mobile money operators,” he disclosed.
He added that they will further enforce compliance with ex-ante AML/CFT regulations relating to KYC and customer due diligence.
Costa encouraged clients to use alternative authorized channels to conduct their banking transactions, thereby fostering the digitalization of financial services.
He said that all commercial banks and mobile money agents are important participants in the finance system, enabling access to financial services in rural communities.
Costa added that the central bank will continue to encourage these sectors to perform their strategic functions in line with the existing regulations governing their activities.
“All the employees in public and private sectors are encouraged to open bank accounts,” he said, adding that the Bank of South Sudan recognizes the vital role that cash plays in the economy and would therefore ensure an inclusive approach as it implements the transition to a more cashless society.
