Annual Report on Exchange Arrangements and Exchange Restrictions, 2007


International Monetary Fund. Monetary and Capital Markets Department
Published Date:
October 2007
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(Position as of December 31, 2006)

Status under IMF Articles of Agreement
Article VIIIDate of acceptance: October 29, 2003.
Exchange Measures
Restrictions and/or multiple currency practicesNo restrictions as reported in the latest staff report as of December 31, 2006.
International security restrictionsNo.
References to legal instruments and hyperlinksn.a.
Exchange Arrangement
CurrencyThe currency of Sudan is the Sudanese dinar, which after July 2007 will be replaced by the Sudanese pound.
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 ±3% around the previous day’s closing rate.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketForward exchange contracts are prohibited.
Official cover of forward operationsn.r.
References to legal instruments and hyperlinksn.a.
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 a 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.
Payments arrearsNo.
Controls on trade in gold (coins and/or bullion)
On external tradeYes.
Controls on exports and imports of banknotes
On exports
Domestic currencyYes.
Foreign currencyThe maximum amount allowed to be exported is $10,000.
On imports
Domestic currencyYes.
References to legal instruments and hyperlinksn.a.
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 abroadOnly banks may keep these accounts.
Accounts in domestic currency held abroadNo.
Accounts in domestic currency convertible into foreign currencyNo.
References to legal instruments and hyperlinksn.a.
Nonresident Accounts
Foreign exchange accounts permittedDiplomatic, foreign, international, and regional missions and organizations; foreign charities and aid organizations; foreign companies and 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.
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 currencyYes.
Approval requiredYes.
Blocked accountsNo.
References to legal instruments and hyperlinksn.a.
Imports and Import Payments
Foreign exchange budgetNo.
Financing requirements for imports
Advance import depositsYes.
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 requirementYes.
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.
References to legal instruments and hyperlinksn.a.
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.
References to legal instruments and hyperlinksn.a.
Payments for Invisible Transactions and Current Transfers
Controls on these transfers
Trade-related paymentsInsurance for imports must normally be taken out with local companies.
Investment-related paymentsAmortization payments on loans to nonresidents are subject to BOS certification regarding the original amount of the foreign loans.
Credit card use abroadn.a.
References to legal instruments and hyperlinksn.a.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsYes.
Restrictions on use of fundsYes.
References to legal instruments and hyperlinksn.a.
Capital Transactions
Controls on capital transactionsYes.
Repatriation requirementsYes.
Controls on capital and money market instruments
On capital market securities
Shares or other securities of a participating nature
Purchase locally by nonresidentsYes.
Sale or issue locally by nonresidentsYes.
Purchase abroad by residentsControls apply only on purchases abroad by ADs.
Bonds or other debt securities
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 to all these transactions.
On collective investment securitiesn.a.
Controls on derivatives and other instrumentsn.a.
Controls on credit operationsControls apply to all these transactions.
Controls on direct investment
Outward direct investmentYes.
Controls on liquidation of direct investmentNo.
Controls on real estate transactionsControls apply to all these transactions.
Controls on personal capital transactions
By residents to nonresidentsYes.
Transfer of assets
Transfer abroad by emigrantsYes.
Transfer of gambling and prize earningsYes.
References to legal instruments and hyperlinksn.a.
Provisions Specific to the Financial Sector
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 13%.
Interest rate controlsn.a.
Credit controlsYes.
Differential treatment of deposit accounts held by nonresidents
Interest rate controlsn.a.
Provisions specific to institutional investors
Pension fundsn.a.
Investment firms and collective investment fundsn.a.
References to legal instruments and hyperlinksn.a.
Changes during 2006
No significant changes occurred in the exchange and trade system.

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