South Sudan central bank hikes benchmark lending rate to 15%

JUBA, Nov 6 (Reuters) - South Sudan's central bank on Friday raised its benchmark lending rate to 15% from 10%, saying it needed to mop up excess liquidity in light of a weakening currency, high inflation and the effects of the COVID-19 pandemic.

The bank said in a statement that it had increased its cash reserve ratio to 20% from 10%.

The economy is still reeling from the damage caused by years of civil war between government forces under President Salva Kiir and those allied with vice president Riek Machar.

"The economy is severely battered by shocks brought about by COVID-19 pandemic, low oil prices, which led to considerable fiscal imbalances and constrained financial system performance, particularly the banking sector," bank governor Dier Tong Ngor said.

The fighting hit oil production, which is now also being affected by low prices for crude.

(Reporting by Denis Dumo Writing by George Obulutsa Editing by Catherine Evans)

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