International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2004
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(Position as of April 30, 2004)
Status Under IMF Articles of Agreement
Article VIIIDate of acceptance: October 29, 2003.
Exchange Arrangement
CurrencyThe currency of Sudan is the Sudanese dinar.
Exchange rate structureUnitary.
Managed floating with no preannounced path for the exchange ratePrior to January 1, 2003, a de facto fixed system was in operation as the authorities intervened in the foreign exchange market to maintain a stable relationship vis-à-vis the dollar. In this system, Dutch foreign exchange auctions took place on a biweekly basis, with the quantity of foreign exchange supplied by the Bank of Sudan (BOS) at these auctions being decided in advance by a committee chaired by the BOS governor; however, the quantity was not preannounced and varied from auction to auction in accordance with external and monetary developments. Bids were accepted within a narrow bandwidth that took into consideration market trends over the preceding three days. The BOS calculated an indicative exchange rate based on the weighted average transactions between the BOS, bank and nonbank dealers, and individual foreign currency account holders during the previous day. The buying rate of the BOS was set at the level of the indicative exchange rate, and the selling exchange rate was defined as the buying rate plus 1%. The midpoint exchange rate was used for accounting purposes for government transactions. There were no regular BOS interventions in the foreign exchange market outside the auctions. Short-term fluctuations were smoothed out using open market operations in securities.
On January 1, 2003, the exchange rate band was discontinued and the Dutch auction system was replaced with an interbank market, in which participants deal directly with each other. As a result of this change and on the basis of additional information regarding the interbank market, the exchange regime of Sudan was reclassified, effective June 1, 2003, to the category managed floating with no preannounced path for the exchange rate from the category pegged exchange rate within horizontal bands. The BOS participates in the market through swaps under a rules-based mechanism that triggers intervention when the exchange rate exceeds a band of ±2% around the previous day’s closing rate. On April 10, 2004, this band was widened to ±3%.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketForward exchange contracts are prohibited.
Arrangements for Payments and Receipts
Prescription of currency requirementsPayments to all countries and all monetary areas (the “convertible area”) may be made in foreign currency from any free currency account or special foreign currency account, and receipts from the convertible area may be accepted in any convertible currency. Effective February 20, 2003, banks are required to open accounts in euro and Saudi riyal with the BOS to facilitate clearance of import payments and export invoices.
Payments arrangements
Bilateral payments arrangements
InoperativeThere is an agreement with Egypt that has been suspended since 1992.
Regional arrangementsYes.
Clearing agreementsYes.
Administration of controlNo.
International security restrictionsNo.
Payments arrearsNo.
Controls on trade in gold (coins and/or bullion)
Controls on external tradeYes.
Controls on exports and imports of banknotes
On exports
Domestic currencyYes.
Resident Accounts
Foreign exchange accounts permittedYes.
Held domesticallyAll residents, except the government, public institutions, and public sector enterprises, are allowed to keep foreign exchange in free accounts. These accounts may be credited with any means of payment without restrictions, other than a customs declaration for cash deposits. Funds from these accounts may be used to make payments and transfers abroad or for any other purpose.
Held abroadYes.
Accounts in domestic currency held abroadn.r.
Accounts in domestic currency convertible into foreign currencyNo.
Nonresident Accounts
Foreign exchange accounts permittedDiplomatic, foreign, international, and regional missions and organizations; foreign charities and aid organizations; foreign companies, foreign contractors, and the foreign personnel of these organizations are allowed to open special foreign accounts with authorized banks. These accounts may be credited with transfers from abroad. Special foreign currency accounts may be debited for transfers abroad to finance foreign travel, to purchase local currency to finance local payments, to make foreign currency payments to local institutions authorized to sell goods and services for foreign currency, and to finance imports. Withdrawals may be made for purposes of travel by account holders or their families, and for local payments in Sudanese dinars.
Approval requiredExcept for airline companies, approval is required to open these accounts. Accounts of airline companies may be credited with payments by their passengers, consignors, and agents, who are allowed to buy travel tickets in foreign currency.
Domestic currency accountsThese accounts may be opened by the same individuals and organizations as those allowed to open foreign exchange accounts. Balances may be converted, subject to approval on the basis of documentary evidence.
Blocked accountsNo.
Imports and Import Payments
Financing requirements for importsThere are no restrictions on import financing.
Advance import depositsYes.
Documentation requirements for release of foreign exchange for importsImports must be accompanied by a pro forma invoice, a valid commercial registration certificate, a valid tax clearance certificate, and the written consent of the authorized bodies for certain categories of imports.
Domiciliation requirementsYes.
Letters of creditYes.
Import licenses and other nontariff measuresLicenses are required only for imports under border trade and preferential trade arrangements.
Negative listImports of some goods, such as wine, drugs, gambling instruments, and weapons, are prohibited for reasons of religion, health, and national security.
Other nontariff measuresImports from Israel are prohibited.
Import taxes and/or tariffsThe import duty rates range from 3% to 40%, and there are four tariff bands.
State import monopolyNo.
Exports and Export Proceeds
Repatriation requirementsAll export proceeds must be repatriated within six months of the date of the bill of lading, depending on the types of settlements.
Financing requirementsn.a.
Documentation requirements
Letters of creditYes.
Export licensesLicenses are required for exports under border trade.
Without quotasAll exports to Israel are prohibited.
Export taxesNo.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersYes.
Trade-related paymentsInsurance for imports must normally be taken out with local companies.
Investment-related payments
Prior approvalAmortization payments on loans to residents are subject to certification from the BOS regarding the original amount of the foreign loans.
Credit card use abroad
Quantitative limitsYes.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsNo.
Restrictions on use of fundsNo.
Capital Transactions
Controls on capital transactionsYes.
Controls on capital and money market instruments
On capital market securitiesControls apply on all transactions in capital market securities.
On money market instrumentsControls apply on all transactions in money market instruments.
Controls on derivatives and other instrumentsn.a.
Controls on credit operationsControls apply on all credit operations.
Controls on direct investment
Outward direct investmentYes.
Controls on liquidation of direct investmentNo.
Controls on real estate transactionsYes.
Controls on personal capital transactions
By residents to nonresidentsYes.
Transfer of assets
Transfer abroad by emigrantsYes.
Provisions specific to commercial banks and other credit institutions
Maintenance of accounts abroadYes.
Differential treatment of deposit accounts in foreign exchange
Reserve requirementsThe reserve requirement on foreign and domestic currency deposits is 14%.
Open foreign exchange position limits
On nonresident assets and liabilitiesYes.
Provisions specific to institutional investorsNo.
Other controls imposed by securities lawsNo.
Changes During 2003
Status Under IMF Articles of AgreementOctober 29. Sudan accepted the obligations of Article VIII, Sections 2, 3, and 4, of the Articles of Agreement.
Exchange arrangementJanuary 1. The exchange rate band was discontinued and the auction system was replaced with direct transactions in the interbank market.
January 1. The exchange regime of Sudan was reclassified to the category managed floating with no preannounced path for the exchange rate from the category pegged exchange rate within horizontal bands.
Arrangements for payments and receiptsFebruary 20. Banks were required to open accounts in euro and Saudi riyal with the BOS to facilitate clearance of import payments and export receipts.
Changes During 2004
Exchange arrangementApril 10. The exchange rate band was expanded to ±3% from ±2% around the indicative rate.

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