Annual Report on Exchange Arrangements and Exchange Restrictions 2005


International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2005
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(Position as of December 31, 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 predetermined path for the exchange rateThe exchange rate is determined in the interbank market, in which participants deal directly with each other. The Bank of Sudan (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. Banks are required to open accounts in euros and Saudi Arabian riyals with the BOS to facilitate clearance of import payments and export invoices.
Use of foreign exchange among residentsUse of foreign exchange among residents is generally not permitted, with few exceptions.
Payments arrangements
Bilateral payments arrangements
InoperativeThere is an agreement with Egypt that has been suspended since 1992.
Regional arrangementsSudan is a member of COMESA.
Clearing agreementsYes.
Administration of controlNo.
International security restrictionsNo.
Payments arrearsNo.
Controls on trade in gold (coins and/or bullion)No.
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. 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 abroadNo.
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 who are allowed to open foreign exchange accounts. Balances may be converted, subject to approval on the basis of documentary evidence.
Convertible into foreign currencyNo.
Blocked accountsNo.
Imports and Import Payments
Foreign exchange budgetNo.
Financing requirements for imports
Advance import depositsNo.
Documentation requirements for release of foreign exchange for importsImports must be accompanied by an 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.
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.r.
Documentation requirements
Letters of creditYes.
Export licensesLicenses are required for exports under border trade.
Without quotasYes.
Export taxesNo.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersNo.
Trade-related paymentsInsurance for imports must normally be taken out with local companies.
Investment-related paymentsAmortization payments on loans to residents are subject to BOS certification regarding the original amount of the foreign loans.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsYes.
Restrictions on use of fundsYes.
Capital Transactions
Controls on capital transactionsYes.
Controls on capital and money market instruments
On capital market securities
Shares or other securities of a participating nature
Sale or issue locally by nonresidentsYes.
Purchase abroad by residentsControls apply only on purchases abroad by ADs.
Bonds or other debt securities
Purchase locally by nonresidentsYes.
Sale or issue locally by nonresidentsYes.
Purchase abroad by residentsControls apply only on purchases abroad by ADs.
Sale or issue abroad by residentsYes.
On money market instrumentsControls apply on all transactions in money market instruments.
Controls on derivatives and other instrumentsn.a.
Controls on credit operationsControls on credit operations
Controls on direct investment
Outward direct investmentYes.
Controls on liquidation of direct investmentNo.
Controls on real estate transactionsControls apply on all real estate transactions.
Controls on personal capital transactions
By residents to nonresidentsYes.
Transfer of assets
Transfer abroad by emigrantsYes.
Transfer of gambling and prize earningsYes.
Provisions specific to commercial banks and other credit institutions
Lending to nonresidents (financial or commercial credits)Yes.
Purchase of locally issued securities denominated in foreign exchangeYes.
Differential treatment of deposit accounts in foreign exchange
Reserve requirementsThe reserve requirement on foreign and domestic currency deposits is 14%.
Credit controlsYes.
Provisions specific to institutional investorsNo.
Other controls imposed by securities lawsNo.
Changes During 2004
Exchange arrangementApril 10. The exchange rate band was expanded to ±3% from ±2% around the previous day’s closing rate.

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