By Lodu William Odiya
The Bank of South Sudan (BoSS) has prohibited telecommunications companies, electricity firms, petroleum companies, banks, and other financial institutions from conducting foreign exchange transactions with unauthorised persons or entities.
The directive is contained in Circular No. 2 BoSS/OOoG/9/2026, issued on September 18, 2026, by the Bank’s Governor, Dr. Addis Ababa Othow.
The circular cited the Foreign Exchange Business Act, 2012, and other banking laws, stating that foreign exchange business may only be conducted by licensed banks, authorised foreign exchange bureaus, or other institutions expressly authorised by the Bank.
“Accordingly, all entities covered by this Circular are hereby directed to ensure that no foreign exchange transaction is undertaken, directly or indirectly, with any person or entity that is not duly authorised and licensed by the Bank to conduct the relevant foreign exchange business,” the directive partly read.
It also warned against arrangements involving substantial South Sudanese pound cash payments outside the banking system, followed by the provision of US dollars or other foreign currencies for goods and services.
According to the circular, transactions conducted outside the regulated foreign exchange market could affect market transparency, exchange-rate formation, and the effectiveness of monetary and foreign exchange policies.
The bank also said such activities could facilitate movement of funds outside the formal financial system and increase exposure to financial crimes.
The BoSS ordered regulated entities to immediately cease foreign exchange transactions with unauthorised persons and verify the license status of every foreign exchange counterparty before conducting business.
Entities have also been instructed to maintain complete records of their foreign exchange transactions, including the counterparty, amount, currency, purpose, supporting documents, and settlement channel.
“The Bank, through the relevant supervisory and enforcement authorities and, where appropriate, in coordination with the Financial Intelligence Unit and law-enforcement agencies, shall investigate suspected violations of the applicable foreign exchange laws and regulations,” the directives continued.
Within 30 days of the circular, companies must submit a declaration to the Department of Banking Supervision detailing foreign exchange transactions conducted during the previous 12 months.
The bank said non-compliance could lead to sanctions, monetary penalties, restrictions on access to foreign exchange facilities, criminal prosecution, and other enforcement measures permitted by law.
The circular took effect immediately and will remain in force until amended, replaced, or withdrawn by the Bank.