Kenya’s Central Bank Governor Njuguna Ndung’u said Thursday an agreement had been reached with the Central Bank of South Sudan to help to deepen the financial markets there.
South Sudan, the latest member of the International Monetary Fund (IMF), is seeking to bolster its financial markets since declaring independence in 2011 from Sudan after years of conflict.
Both sides have been working on an action plan to boost the operational efficiency of the Central Bank of South Sudan.
South Sudan Bank Governor, Kornelio Koriom Mayik, signed the pact to formally initiate the cooperation. The two sides agreed to formally open accounts with each other, a step seen to enhance trade between them.
South Sudan has been facing a foreign currency crunch since its split from Khartoum which was worsened by the disagreement with Khartoum over the sharing of oil revenue or oil transit fees.
In a communique issued after a two-day meeting of senior bank officials, the two Governors said they set up a Technical Committee to implement new measures to enhance cooperation between the two sides.
The team is to undertake a thorough review of the technical support needs of the South Sudanese bank.
South Sudanese bank officials would receive training from the CBK on enhancement of their financial markets.
Kenya will in the meantime help SSB to review its balance sheets.