Central Bank of Sudan

Introduction
•
In the past, some of the functions of the Central Bank of Sudan were divided between the Ministry of Finance, Sudan Currency Board and the National
Bank of Egypt .The Ministry of Finance maintained part of the official foreign exchange balances through two accounts, one in USD and the other in
Sterling Pounds which were managed respectively by the National Bank of Egypt and Barclays Bank D.C.O. As to the currency Board it used to perform the
task of issuing and managing the currency and to keep a part of the country's balance in foreign currency as a cover to the national currency.
• Also the branch of the National Bank of Egypt used to manage the banking activities of the government besides discharging its main role as the bank of
commercial banks (bank of the banks) at the same time. During this period, the Egyptian and British currencies were prevailing until the first national
currency was issued.
• After the independence of Sudan, the need for having a Central Bank to replace the existing bodies and to perform its functions of regulating the process
of the issuance of the national currency , formulating and directing monetary and finance policies to serve various economic sectors , build up a strong ,
efficient and effective banking system that meet the development needs of the country, maintain government accounts , act as adviser for the
government on financial affairs and provide foreign currency for the development projects adopted by the government at that time. To achieve the
abovementioned objectives, a committee of three experts from the USA Federal Reserve was formed in December 1956.
• The experts were:
• Oliver Weale , Vice chairman of the Federal Reserve Bank of Francisco as president,
• Alan R. holmes from the Federal Reserve Bank of New York as a member.
• Andrew F.Primer from the Federal Reserve Bank of New York as a member.
• The Committee was requested to conduct a study on the possibilities of establishing a Central Bank in Sudan. It submitted its report in March 1957. This
was followed by the issuance of the Bank of Sudan Act of 1959. The Bank opened for business on February 22, 1960.
• The Act stipulated that the Bank of Sudan shall have an independent corporate personality, legal personality and a perpetual succession and a common
seal and may litigate in its own name as a plaintiff defendant. Following the establishment of the Bank of Sudan, Sudanese officials were appointed to
replace Egyptian officials, while the junior staff that used to work for the National Bank of Egypt were retained .The first Governor of Bank of Sudan was
His Excellency / Mamoun Behairy.
• Due to the especial nature and purpose of the Central Bank, a number of qualified employees with university degrees were recruited, in addition to those
who were seconded from the Ministry of Finance.
 Main Objectives of the bank
• The adoption by a country of a particular economic system, may call for its Central Bank to carry out certain
functions which differ substantially from those of  central banks in other  economic systems.
• Each Central Bank, has its own Act specifying these   functions which  can be amended as deemed necessary.
• In December, 2002, the Bank of Sudan Act, 2002 was issued wherein Section (6) specified the objects of the Bank
as follows:
• Issue currency of the types thereof, organize, control and supervise the same;
• Issue monetary and financing policies, and manage the same, in consultation with the Minister (Minister of Finance
and National Economy) in such way, as may achieve the national objectives of the national economy;
• Organize banking business, monitor and supervise, strive to promote and develop and raise the efficiency thereof, in
such way, as may achieve the balanced economic and social development;
• Strive to achieve economic stability and the stability of the par value of the Sudanese Dinar;
• Act, in its capacity as the bank of the  Government , as an advisor and agent thereof, in the monetary and financial
affairs;
• abide, in the discharge of the duties, achievement of the objects, exercise of the powers and supervision thereby, of
the banking system, by the ordinances of the Islamic Sharia.
Main Objectives of the bank
• After concluding the Comprehensive Peace Agreement (CPA), the Central Bank of Sudan Act 2002
was amended in 2006, wherein the nature of the banking system, the Bank and its branches,
were specified in Section (5) from the Act as follows:
• The banking system in Sudan consists of a dual banking system, Islamic in the North and
conventional in the South.
• The main headquarters of the Bank shall be in Khartoum and the Bank may establish branches or
agencies inside Sudan and nominate foreign correspondents.
• Bank of Southern Sudan (BOSS) shall be established as a branch of the Central Bank to provide, in
addition to its other functions, conventional banking services in Southern Sudan including
licenses to the financial institutions according to the rules and regulations issued by the Board
(The Board of the Central Bank of Sudan). The management of the Bank of Southern Sudan
(BOSS) shall be assumed by one of the two deputies of the Governor and shall be accountable to
the Governor on managing the conventional banking system in Southern Sudan as a window of
the Bank’s windows according to its rules, regulations and policies.
• The bank shall have an independent corporate personality, perpetual succession, a common seal
and may litigate in its own name.
 Main Objectives of the bank
• Also Section (6) of the Act, specified the main responsibilities of the Bank as follows:
• The Bank shall have the following objectives:
• Achieving stability of prices, maintaining stability of the exchange rate, efficiency of the banking system and
issue of currency of the types thereof, organize, control and supervise the same;
• Formulating and implementing monetary policy, depending on the first place on the market forces in such
away to achieve the national objectives of the national macro economy in consultation with the Minister
(Minister of Finance and National Economy);
• Organize banking business, monitor and supervise, strive to promote and develop and raise the efficiency
thereof, in such way, as may achieve the balanced economic and social development;
• Act, in its capacity as the Government banker, as an advisor and agent thereof, in the monetary and financial
affairs;
• Abide in the discharge of the duties, achievements of the objects, exercise of the powers and supervision
thereby, of the banking system, by the ordinances of Islamic Sharia and the conventional banking customs;
• After the secession of Southern Sudan, the Bank of Southern Sudan (BOSS) became the central bank of the
State of Southern Sudan on the 9th of July 2011. All branches of Central Bank of Sudan in the previously
southern states became affiliated to it. Topics related to Item no (14) of the Protocol of wealth sharing,
concerning the monetary policy, banking, currency, and lending has been frozen. In addition to this,  policies
of the traditional banking system in southern Sudan,  and all circulars of the Central Bank of Sudan related to
the dual system has been suspended, until the amendment of the law of the Central Bank of Sudan for the
year 2002.
Organizational culture
• Central bank of Sudan organizational culture is for ethics and teamwork in
the company’s multinational operations, with cultural traits that motivate
employees to abide by the organization’s philosophy and core values. The
resulting human resource management situation reflects the needs of the
company in terms of culturally supporting its competitive advantages in
the financial services industry. The following characteristics define Central
bank of Sudan corporate culture:
• Leadership accountability
• Ethical conduct
• Disciplined management of risk
• Team orientation
• Empowerment through diversity
Staff motivation:
• Employee motivation is arguably the most complex out of all the
management functions partly because what motivates employees,
changes constantly. The last decade or so has seen a lot of
advancement in banking procedures, functions and operations
especially in the technology side. The central bank of Sudan have
made important updates and developed the financial packages and
services accordingly.
 Central Bank of Sudan SWOT Analysis

Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis of Central Bank of
Sudan. Strengths are:
Strengths 1. Large network across India
2. Expertise in small and medium enterprise banking
3. Active in Government schemes for  agro based and small scale industries

Here are the weaknesses in the Central Bank of Sudan SWOT Analysis:
1. Personal banking in growing stage
Weaknesses
2. Less international presence
3. Low advertising and brand presence
 Following are the Opportunities in Central Bank of Sudan SWOT Analysis:
Opportunities 1.Initiative for self-employment amongst youth
2. Favourable Government schemes

The threats in the SWOT Analysis of Central Bank of Sudan are as

mentioned:
Threats 1. Fluctuating economic scenarios
2.Highly competitive environment
3. Policies of the government