South Sudan wants to stop the pound weakening by setting an exchange rate target of 2.9-3.3 against the dollar and will intervene to ensure the currency stays in that band, a senior government official said on Tuesday.

A scarcity of dollars has caused the South Sudanese pound, which was introduced shortly after the country gained independence in July, to depreciate sharply, sliding to over 4 pounds against the dollar on the black market.

To stem the slide the central bank will supply dollars using funds from oil revenues, deputy finance minister Marial Awou Yol told Reuters.

(The) Central Bank has introduced a managed float where it has a lower band of 2.9 and an upper band of 3.3 South Sudanese Pounds against the dollar, he said.

(The) Central Bank will intervene from time to time to supply the market with dollars to ensure that the exchange rate remains stable, he said.