The Central Bank of South Sudan on Friday issued an order banning all unlicensed foreign exchange trade.

Bank Governor James Alic Garang said the move aims to stabilize the local currency, the South Sudanese Pound, and counter money laundering.

Addressing a press conference at the Central Bank Headquarters in Juba, Alic said all unlicensed foreign exchanges remain illegal following the elapse of a 45-day grace period given by the apex bank to reorganize the foreign exchange (FX) market. 

“In accordance with the Foreign Exchange Business Act 2012, the Anti-Money Laundering and Counter-Terrorism Act 2012, it is henceforth illegal to deal in FX trade without a valid license from the Bank of South Sudan,” Alic said. 

He said all informal dealers are required to obtain licenses and comply with the policy directive with immediate effect, adding that law enforcement agencies will diligently enforce the policy to ensure compliance. 

Alic said all authorized dealers or currency traders should display buying and selling rates on their premises and maintain a tight spread or ensure a small variability between buying and selling rates relative to the Central Bank’s reference rate. 

South Sudan said last month that the conflict in Sudan had affected its country’s oil exports, hence the local South Sudanese Pounds (SSP) loss in value. This led to soaring prices of essential commodities, including fuel, which affected the market. 

Last week, the country’s security agencies cracked down on the foreign exchange dealers on the streets of the capital, Juba. More than 20 people were reportedly arrested during the operation and the team confiscated large amounts of money traded in the black market.