Bank of South Sudan signals decisive action on cash
The Governor of the Bank of South Sudan, Damian Ohisa, says the central bank will take decisive measures to address persistent cash and liquidity shortages in the economy.
In a press statement dated January 30, 2026, Damian Ohisa framed his return as timely, citing inflationary pressures, foreign exchange volatility, and limited liquidity across the banking system.
Monetary and banking policies for 2026 stay on course
Damian Ohisa said the institution will continue implementing the approved Monetary and Banking Policies for 2026, with the aim of providing adequate liquidity while preserving price stability and overall financial-system soundness.
He stressed that resolving the cash shortage remains a top operational priority for the central bank, alongside broader macroeconomic objectives.
Global risks and the case for fiscal-monetary coordination
While noting expectations of global economic resilience in 2026, Damian Ohisa warned that trade tensions, fiscal pressures, and persistent uncertainty could still transmit risks to South Sudan’s domestic outlook.
Against this backdrop, he argued that stronger coordination between fiscal and monetary authorities is essential to manage current economic challenges in a coherent policy mix.
Tighter stance, targeted interventions to ease liquidity
The Bank of South Sudan plans a tighter monetary policy stance to curb inflation, stabilize the exchange rate, and address macroeconomic imbalances, while also intervening directly and indirectly to ease liquidity constraints.
Damian Ohisa said the central bank intends to deploy all available monetary policy instruments as conditions evolve, with the goal of improving cash availability across the economy.
2026 policy rate, reserve requirements, and bank liquidity rules
Under the 2026 framework, the central bank will keep the Central Bank Rate at 13 percent, with any adjustment subject to review by the Monetary Policy Committee.
Reserve requirements are set at 15 percent for local-currency deposits and 20 percent for foreign-currency deposits, alongside a minimum liquidity ratio of 20 percent for commercial banks.
Commercial banks are also expected to keep foreign exchange exposure within prudential limits, a step presented as necessary to protect the stability of the financial sector.
Macroeconomic targets: growth, inflation, lending, and reserves
Damian Ohisa said the measures are designed to support 2026 targets including real GDP growth of 5.3 percent and headline inflation contained at 14.4 percent.
The policy direction also seeks increased lending to the private sector and the accumulation of foreign exchange reserves equivalent to 4.5 months of import cover.
Banking sector resilience: capital, AML/CFT, and payments modernization
To strengthen the banking sector’s resilience, the central bank reaffirmed its commitment to fully implementing minimum paid-up capital requirements and strictly enforcing Anti-Money Laundering and Counter Financing of Terrorism regulations.
Damian Ohisa said commercial banks must comply with customer due diligence and Know Your Customer standards, while supporting modernization and digitalization of the national payment system.
Ministry of Finance cooperation and diversification priorities
Looking ahead, the central bank plans to intensify collaboration with the Ministry of Finance and Planning and other stakeholders, with an emphasis on economic diversification.
Damian Ohisa highlighted agriculture and mining as priority sectors in this effort, describing them as potential engines for more sustainable growth.
Outlook for 2026: confidence in restoring liquidity
In closing, Damian Ohisa told citizens and the business community the Bank of South Sudan is fully aware of the liquidity and cash shortages and is “doing its utmost best” to resolve them (Standard Zone News).
He expressed confidence that continued policy reviews and targeted interventions will bring the situation under control and streamline the foreign exchange market during 2026.