Central Bank of Sudan Policies for 2009

The Central Bank of Sudan Policies for the Year 2009


The Central Bank of Sudan Policies for the year 2009 are hereby issued in a context of perceived full coherence with the macro-economic goals of the fiscal policy “the general national budget” and in accordance with the guidance of the five-years strategic plan of the central bank “2007-2011” that aims essentially at managing the overall volume of liquidity in the economy in a manner that adequately and prudently meet the economic sectors requirements to attain positive economic growth and monetary stability through applying indirect dual banking – friendly instruments which equally serve sustaining the efficiency and soundness of the banking system.

This policy also envisages positive contribution – in collaboration with the other concerned entities-in fostering the government efforts towards speeding-up the tempo of the “Comprehensive Agricultural revival programme” which planned to boost production and productively in the agricultural sector including its both sub sectors, namely; the farming and animal products.

Furthermore, this policy envisages fostering financing the operations of social dimensions namely; micro and meager micro-finance through setting-up novel subordinate financing units in the banks lacking them or promoting the currently operating ones. Also the policy encourages financing popular and rural housing operations, beside also encouraging financing development through the specialized banks.

A part from the afore-mentioned objectives, the policy also has taken into account the rampart developments of the current global financial crisis which its consequences anticipated to impact the overall national budget, the private sector and the banking sector, a situation that entails adopting congenial flexible measures to mitigate and contain that anticipated impacts.

With regard to the non-performing loans, which adversely affected several economic sectors, the Central bank will manage - through this policy- to sustain its already exerted robust efforts to resolve that problem. Accordingly, for that concern, the policy accommodated a host of measures that could curb the magnitude of those loans beside also incorporated the visions to contain them within the conventionally known international ratios in the future.

The policy will also endeavour to keep up the efforts to contain the impacts of the enforced American Economic Embargo on Sudan through encouraging banking dealings with the strategic partners in the Arab and the African regions beside the East Asian Countries and the other emerging economies.

The policy also envisages assuming particular heed for deepening the Islamic banking through efforts including encouraging applying Islamic modes of finance other than the Murabaha, and adoption of additional novel modes of finance compatible with the dual banking regime.

The Policy Guidelines

Pursuant to the afore-mentioned broad dimensions of concern of the policy for the year 2009, accordingly the policy has been formulated in the context of achieving the bank’s objectives of maintaining monetary and financial stability along with the soundness and efficacy of the dual banking regime in accordance with the following guidelines:

  1. Continuation in the implementation of the wealth-sharing protocol pertaining to financing, monetary and banking policies.
  2. The broad goals of the five-years strategic plan of the Central bank of Sudan (2007 – 2011).
  3. The General National budget of the year 2009.
  4. Particular consideration for dealing with the local developments in the fronts of the non-performing loans and micro and meager micro finance and also with the International developments especially the current international financial crisis.

On the light of those guidelines, the strict objectives set for the Central bank policies for the year 2009 are the followings:

  1. Maintaining the monetary and financial stability.
  2. The sustainability of the economic growth rate.
  3. Securing adequate liquidity for the overall economy.
  4. Promoting the efficiency of the dual banking regime through strengthening the financial positions of banks, enhancing their performance, assets quality and promoting their efforts towards addressing the problem of non-performing loans beside protecting them from the anticipated impacts of the international financial crisis.
  5. Continuation in the participation in the government policy aiming at combating poverty through provision of micro-finance.

By virtue of these guidelines and the objectives thereof, and in accordance with the powers entrusted to it, the central bank of Southern Sudan" BOSS " will issue the necessary additional subordinate directives for activating the conventional banking window.

Hence, the Central bank of Sudan policies for the year 2009 include the following divisions: