It covers payment methods and information on, banking systems, foreign exchange controls, and U.S. and correspondent banking.
Sudan’s financial system is relatively small by regional standards. The banking sector comprises almost 40 banks, including five foreign and four state-owned banks. Sudan’s banking sector remains under capitalized, deficient in employing modern technology, and lacking in trained and experienced human resources. Most banks and other financial institutions are concentrated in Khartoum. Most foreign banks operating in Sudan are based in Gulf states, including Saudi Arabia, United Arab Emirates, and Qatar. The Central Bank of Sudan lists banks operating in Sudan.
The financial and banking sector is regulated by the Central Bank of Sudan (under the Sudan Central Bank Act, 2002), the Khartoum Stock Exchange (under the Khartoum Stock Exchange Act, 1994) and the Insurance Supervisory Authority (under the Insurance Control Act, 2001).
Sudan has a home-grown, unique Islamic banking system and is in the process of reintroducing conventional banking practices.
Foreign Exchange Controls
The Central Bank of Sudan abandoned its managed float policy in March 2022 and allowed the Sudanese Pound to float against other currencies, allowing market forces to determine its value. The Central Bank has reversed stringent conversion and transfer policies in place under the CLTG and domestic businesses have so far been able to secure adequate hard currency to pay for imports and to facilitate foreign-currency transactions.
Foreign companies operating in Sudan require the Central Bank’s permission to repatriate profits and foreign currency. The Investment Act of 2013 enshrines the right to repatriate capital and profits, provided the investor has opened an investment account at the Central Bank before starting operations. Although black market transactions are significantly reduced since the Central Bank jettisoned a fixed exchange rate in 2021, many Sudanese firms still complete a significant number of transactions outside of official channels or complete transactions abroad in U.S. dollars, euros, riyals, or dirhams. The Investment Act also established courts to handle investment issues and disputes, however the judiciary has limited expertise adjudicating commercial disputes.
U.S. Banks and Local Correspondent Banks
No U.S. banks operate in Sudan. The Export-Import (Ex-Im) Bank does not offer any Sudan-specific programs.