SOUTH SUDAN EXCHANGE RATE UPDATE

11TH NOV 2020 SSBA BACKGROUND

• SSBA WAS Establishment in 2010 with membership of all commercial banks, license by Bank of (BSS). • Broad objective-promote a sound financial sector through engaging regulators, government and other private sectors on behalf of commercial banks. The Association is one of the key stakeholder in the country • The Association does lobby towards the development of financial sectors through establishment of sound policies, practice and compliance/standards and support modernization of transactions settlements as well as engaging other shareholders on issues affecting commercial banks

VISION MISSION Contribute toward a vibrant and diversified To seek South Sudan bankers’ relations, modern banking industry that adequately engage negotiate mutual interest, share and collaborate with economic development knowledge and promote innovative partners for a sound financial service deliveries banking amongst stakeholders to the public, private entities and international communities in South Sudan.

1 OBJECTIVES OF SSBA:-

• Advocate on behalf of the banking industry, and championing sound financial sector development in South Sudan • While working with BSS, develop and harmonize professional business ethics, compliance and code of conducts of banking sector • Participate in the development transaction settlements modalities. • Provide trainings to its members and other stakeholders on sound financial and ethics banking. • Undertaken research on emerging economic and financial issues. • Promote the relationship with Bank of South Sudan. Its membership and the regional and International bankers associations Banks.

1 LIST SSBA MEMBERS

• Ethiopia Commercial Bank • South Sudan Commercial Bank • Kush Bank • Ecobank • Alpha Commercial Bank • International Commercial Bank • KCB Bank • Opportunity Bank • • Southern Rock Bank • Liberty Commercial Bank • Regent Africa Bank • Equity Bank • Peoples Bank • Buffalo Com Bank • Phoenix Bank • Cooperative Bank • Royal Express Bank • Nile Com Bank • Qatar National Bank • Agricultural Bank • Afriland First National Bank • Stanbic Bank • Ebony Commercial Bank • Africa National Bank • Eden Commercial Bank • National Credit Bank • St. Theresa Com Bank • Mountain Trade & Development Bank • Charter One Bank

1 TRACKING THE USD/SSP RATE

1 EXPLAINING THE CURVE

• 22nd Feb

- Coalition Government Formed

• 14th March

- Covid 19 Restriction measures

• June 2019

- Deficit Financing Commences hence the exponential depreciation of the pound

• August 2020

- Abolishment of the special accounts - Announcement by Offficals that caused panic

• October 2020

- Govt announces plans to change the SSP currency as part of demonetization - Govt shelves plans for demonetization

1 TAMING THE DEPRECIATION

The New Governor announced a number of measures in his policy statement dated 6th November;

• Change of the CBR to 15% from 10% • Change of the Cash Reserve Ratio to 20% • Change of the Reserve Requuirement Ratio to 20% • Introduction of Bills • Enhanced and targeted supervision of Commercial Banks

We also expect the following to strengthen the SSP

• Continous injection of USD into the market as per the Council of Ministers Resolution in October 2020 • Draw down of the Afri Exim Loan which is estimated at USD 250 Million

1 THANK YOU