BSS formulates monetary policy to combat soaring inflation

Hon. Dier Tong Ngor, newly appointed Governor of the BSS |Photo: Via Facebook

November 6, 2020 (Thessherald)–The Bank of South Sudan’s Monetary Policy Committee (MPC) held an urgent Extraordinary Meeting chaired by the Governor, Hon. Dier Tong Ngor on Thursday in the capital, Juba.

The meeting centered on current inflation rates and how effective monetary policy can be formulated and adopted in an effort to boost the country’s moribund economy.

“The meeting was held on the backdrop of the rapid depreciation of the SSP and high inflation. The meeting suggested ways to calm the market, using available monetary policy tools.”

The committee acknowledged that the nation is going through perilous times in the wake of the Covid-19 pandemic, and low oil prices among other issues.

“The MPC noted that the economy is severely battered by shocks brought about by COVID-19 pandemic, low oil prices, which led to considerable fiscal imbalances and constrained financial system performance, particularly the banking sector.”

“In light of the above, the MPC resolved to tighten monetary policy stance to mop the excess liquidity from direct borrowing from the Central Bank.”

In this regard, the MPC resolved the following:

• Raised the Central Bank Rate (CBR) to 15%

• Increase the Reserve Requirement Ratio (RRR) to 20%

• Increase the cash reserve ratio to 20%

• The Central Bank will urgently introduce its own bills as a toll of liquidity management mechanism.

• Bank will step up its supervisory role by continuously monitoring the cash in-vault of commercial banks.

U. S. Inaugurates 78 Kilometers of Rehabilitated Feeder Roads in W. Equatoria

Troika countries issue a press release, calling for full implementation of R-ARCSS | Photo: USA Embassy in S. Sudan

Press Release: U.S. Embassy Juba, South Sudan

(Thessherald)–Nzara, South Sudan – Today the U.S. Government marked the completed rehabilitation of 78 kilometers of roads in Western Equatoria, funded by the United States Agency for International Development (USAID).

The Gangura-Rimenze and Nzara-Basukangbi feeder roads connect South Sudan to the border of the Democratic Republic of the Congo, which will boost cross-border trade. These roads connect local farmers in rural areas to markets in urban areas, such as Yambio and Nzara. The rehabilitation of these roads will facilitate the movement of people and services, benefiting an estimated 100,000 people who rely largely on road transport.

“As we inaugurate these rehabilitated roads today—marking a new era for the people who live in Western Equatoria State—I want to tell you that on behalf of the American people, we stand with you in hope and partnership, looking forward to a bright and prosperous future for South Sudan,” said U.S. Ambassador to South Sudan Tom Hushek.

Since 2011, the U.S. Government has funded the rehabilitation of 340 kilometers of feeder roads in Western Equatoria. Western Equatoria has the potential to be the breadbasket of South Sudan in peacetime with opportunities for export of agricultural products.

To highlight the importance of agriculture as the mainstay of the people of Western Equatoria, local farmers supported through a partnership between USAID and the Food and Agriculture Organization of the United Nations (FAO) showcased their products to representatives of the U.S. Government, United Nations, and journalists attending the event.

The USAID-FAO project is helping communities recover from the devastating effects of conflict and displacement by rebuilding and diversifying sustainable livelihoods, so that South Sudanese can again support their families through farming, fishing, beekeeping, and other trades.