In the name of Allah, the Most Gracious, the Most Merciful
Central Bank of Sudan
Press Release No. (2)
The Central Bank of Sudan, through its Crisis Management Units, its state branches, and the committees it formed in the aftermath of the outbreak of war, has continued working to strengthen confidence among users of the banking system and to ensure financial stability.
The war that the country has been experiencing since 15 April 2023 has directly affected the banking sector, just like other sectors. It has been subjected to looting, vandalism, and organized attacks that targeted some Central Bank of Sudan branches as well as branches and headquarters of commercial banks in Khartoum State and other war-affected states. This has led to disruptions in the normal provision of banking services and the suspension of some services, particularly since the Central Bank, all bank headquarters, and most branches in Khartoum State are located within the conflict zone. Moreover, the banking sector’s reliance on electricity and telecommunications — both of which have also been damaged by the events — further compounded the challenges.
Despite all these obstacles, the Central Bank has worked to strike a balance between the urgent needs of this stage and the stability of the banking system, by setting the necessary arrangements to resume banking operations and formulating these arrangements into circulars and directives that have been, and will continue to be, issued as developments unfold.
The following highlights the efforts made by the Central Bank of Sudan to overcome these challenges:
Participation of the Governor of the Central Bank in the Supreme Emergency and Crisis Management Committee, recently formed under the chairmanship of the Acting Prime Minister and based in Port Sudan. He is also a member of the Strategic Commodities Committee and takes part in all its meetings, including those related to preparations for the agricultural season with farmers’ committees and state governors. These meetings resulted in revising regulations and putting in place the necessary arrangements to resume the granting of banking finance to beneficiaries in various sectors, especially the agricultural sector and small-scale producers. These regulations were issued in a circular titled “Temporary Regulations for Granting Banking Finance.”
Managing the available cash in Central Bank branches, which enabled the payment of salaries for regular forces for April 2023, in addition to covering some operational expenses for sectors on behalf of the Federal Ministry of Finance, which lost a significant portion of its revenue sources due to the war.
Resumption of some Central Bank functions that were previously managed centrally, through a number of its branches. This includes opening windows for foreign currency purchases and following up on export procedures.
Introducing measures that helped facilitate the flow of foreign exchange transfers to meet some urgent obligations.
Regularly updating the public dealing with the banking system about the Central Bank’s efforts, and publishing its circulars and directives on the Bank’s website and through available media channels, as well as coordinating with the relevant authorities to issue clarifications to the public when necessary.
Close follow-up with banks operating through private switches to address challenges affecting their electronic services. Some applications have been restored, while efforts continue to reactivate others still out of service.
Directing banks to resume operations in branches located in states not affected by the war. Some suspended branches have indeed resumed work.
Allowing government entities to open accounts in banks with authorization from the Ministry of Finance as a temporary exceptional measure.
Temporarily waiving the requirement for valid identification documents if they expired on or after 15 April 2023, provided the original document is presented.
Allowing banks to extend the validity of expired bank cards for six months from the renewal date.
Permitting banks to open branches or representative offices in the states to provide banking services, on the condition that the Central Bank branch in Port Sudan is notified.
The Central Bank of Sudan will continue its efforts, in coordination with the relevant authorities, to overcome all obstacles facing the banking system and ensure the provision of banking services to clients.
Media Office – Central Bank of Sudan
Thursday, 15 June 2023
