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Regulations |
About CBOS |
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About Central Bank of Sudan |
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After Sudan achieved independence, there arose a need for a Central Bank to replace all those institutions which carried out its functions of regulating currency issuance and planning monetary and financial policies to serve economic sectors, and build a strong banking system capable of responding to the economic development needs in the country. A need for a Central Bank became exigent at that time when the government embarked upon grand scale economic programs which necessitated effective monetary and financial policies that would cope with those ambitious Sudanese economic programs. To achieve those grandiose aims a three-man commission of experts from the American Federal Reserve Bank was set up in 1956 to look into a possibility of establishing a Central Bank in the Sudan. After completion of their task the commission handed over their recommendations, and this was followed up by the promulgation of the Law of the Bank of Sudan for 1959. There after, the Bank of Sudan commenced its functions in February 1960 as an independent institution enjoying the status of a legal person entrusted with the powers to enter into contracts, and empowered to bring legal cases as a litigant or defendant in accordance with Article (5). The aims of the Bank are as follows:- - The main aims of the Bank of Sudan are to regulate issuance of currency and coins, to help regulate the banking system, the monetary and the credit systems in the Sudan, and to work to ensure financial stability, to achieve economic development in the country in a systematic and a balanced fashion, to consolidate external currency stability, to be the bank of the government and its advisor in financial affairs. Therefore, the Law has facilitated the Bank to carry out its assigned roles as the following functions:- 1- Issuance of paper currency and coins. 2- Keeping government and government departments accounts. 3- Managing external and internal public debt. 4- Managing monetary policy. 5- Carrying out researches and planning concerning the development of the banking system. 6- To be the Bank of banks keeping their reserves in safe custody, to be the lender of last resort, and to be a Clearing House. 7- Managing credit as the Central Bank determines general and sector credit ceilings. As each country adopts a particular economic system this may oblige the Central Bank to carry out certain roles that may fundamentally differ from other economic systems. It is worth mentioning that each Central Bank has a special law that specifies those functions, and that can be amended as necessity requires. Since its establishment in 1960 up to 1984, (the year in which the Islamic laws were introduced), the Bank of Sudan continued to use both direct and indirect financial policy instruments that facilitate it to supervise the credit policy as it used to control the quantity of money through interest rates, changing the ratios of monetary reserves, directives by way of determining maximum levels of financing (credit ceilings), and through other supervisory measures. The Bank also carries out its administrative and banking control roles according to its laws, which were amended several times to cope with the financial and economic policies of the country the last of which was in 1993. After the Islamization of the banking system the Bank of Sudan continued to carry out its roles to entrench Islamization of banking through the establishment of the Sharia High Supervisory Board in the Bank in 1993. This was to ensure that the banking operations are free of traces of usury like practices. The Bank of Sudan continued to play its role as the Bank for the central and states governments , and for the government and semi government institutions as it contributes into their capital formation, keeping their accounts in both local and foreign currencies. This is in addition to its role as a lender to the government, and a lender of last resort to the banks. As the Islamization of banking has been completed the bank of Sudan has got rid of the treasury bills and government bonds instruments on which interest rates were applied. In their place the Bank has issued financial certificates that conform to the Islamic system. The Bank of Sudan has continued to play its role to entrench Islamization of banking through monetary policies that cope with the public trends and the National Comprehensive Economic Strategy Policy. Since the beginning of the Three Years economic program (1990-1993), the Bank of Sudan carried out financing policies that aimed to revitalize the Sudanese economy the last of which was the credit policy of 2000 which was based on the following: - 1- Emphasizing the supply side measures and the monetary stability in view of better utilization of the banking resources by stressing financing on economic priority sectors, and continuation of streamlining general supply policies. 2- Continuation with the social support program for the benefit of the poor families in accordance with the national mobilization project for social security and for the improvement of productivity. 3- Continuation with financing public corporations through the banks without recourse to the Bank of Sudan for direct financing. 4- Allowing the commercial banks to offer financing in foreign exchange according to the regulations issued by the Bank of Sudan. The Administrative Structure of the Bank of Sudan: - The administrative structure of the bank of Sudan is composed of the Higher Administration, and eleven general administrations, in addition to ten branches spread over the different states of the Sudan.
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