Press Statement by Hon Dier During the First Quarter Ordinary Meetings of Board of Directors
Conclusion of the First Quarter Ordinary Meetings of Board of Directors of Bank of South Sudan, held between 2 to 4 of April 2019
The Board of Directors of the Bank of South Sudan (BSS) concluded today, April 2019, its ordinary Quarterly meetings, which have been taking place between (April 2′ d — 4th, 2019). During the three days deliberations, the Board discussed and made resolutions on several matters, covering the prevailing macroeconomic environment in the country as well as deliberations on various reports on the performance of the Bank in the year ending 2018 and also reviewed the performance in the l’t quarter of 2019. Specifically, the Board deliberated on the following important agenda:
- The Board reviewed the macroeconomic report for the year ending 2018 (4″ Quarter Report) and also took note on the prevailing global macroeconomic conditions, including the expectations and trends of international oil prices and oil production. The discussions also covered the developments in the emerging economies and the East African Region in
- In the context of the South Sudan’s macroeconomic indicators, the Board noted that South Sudan domestic outlook is starting to feature positive developments, following the signing of the peace agreement and the relative increase in oil production. Also the Board noted the steady improvement of international oil prices, which will impact positively on the country’s foreign exchange reserves position. All these factors are helping in the restoration of confidence in the economy and have reflected positively on the country’s key macroeconomic indicators. Inflation has thus dropped from triple digits, at the beginning of 2018 to about 40% by the end of the 4th quarter. This trend has been supported by the liquidity tightening stance taken by the Central Bank. The Exchange rate has also relatively remained stable during the period, except in December when the pound lost some value due to high demand for foreign currency during the Christmas festive season. However, the Bank has taken measures to meet the demand by allocating foreign exchange resources for the importation of fuel and food, and other essential commodities.
- The Board deliberated on the Bank’s Corporate-Level Performance Evaluation for 2018. Following the launch of its strategic plan, using the Balanced Scorecard (BSC) approach, the Bank developed a framework for its performance evaluation. During this meeting, the Board deliberated on the first-ever performance evaluation report to be produced by the Bank for the year 2018. Such reports are very critical as they are meant to help the bank to learn lessons. The Board deliberated on the report and took note on the achievements and challenges during the reporting
- The Board also discussed the I SO quarter financial performance of the Bank of South Sudan and the budget execution status in the quarter. In this regard, the Board noted with satisfaction the strong financial results in the l’t quarter, which has exceeded projections by about 3% while expenditures are below projections by about 2%. The board directed the management to further streamline the procurement procedures in the Bank to create more efficiency.
- The Board also deliberated on the progress made by the Bank, regarding the implementation of the International Financial Reporting Standard 9 (IFRS9). This new standard was issued by the International Accounting Standards Board (IASB) to replace IAS 39. IFRS9 introduces changes in the way financial instruments are classified and measured, a new impairment model, and a new approach to hedge accounting that better aligns with risk management practices. The Board deliberated on this new accounting standard and granted approval for the adoption of the standard by the
- Finally, the Board reviewed the status of implementation of its previous resolutions and directives and was satisfied with the level of implementation. The Board appreciated the commitment of the staff towards the implementation of the Strategic Plan and directed the Management to invest further in capacity development in the
Dier Tong Ngor
Governor and Board Chairman,
Bank of South Sudan