Sudan central bank unveils 2026 reform plan to revive war-hit economy

January 1, 2025 (PORT SUDAN) – Sudan’s central bank on Thursday announced monetary and banking reforms for 2026 intended to stabilise prices and rebuild a financial system crippled by more than 20 months of war.

The conflict that erupted in April 2023 has cost lenders an estimated $20 billion in looted or destroyed assets, pushed non-performing loans above 6% and triggered a sharp drop in deposits, the bank said in a circular.

Under the new framework, the regulator targets money-supply growth of 47.6% and monetary-base expansion of 41.1%, with average inflation expected to ease to 65% next year from current triple-digit levels.

Policy priorities include recapitalising weak lenders, expanding digital payment networks, and channelling credit to agriculture and manufacturing to curb inflation and steady the exchange rate. The bank also pledged to introduce green-finance rules and tighten liquidity requirements, alongside stress tests and a real-time early-warning system to monitor cash flows.

A separate restructuring strategy for banks and non-bank financial institutions will be published later this year, the central bank added.