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Sudan allows banking clearing transactions in U.S. dollar

October 24, 2017 (KHARTOUM) - The Central Bank of Sudan (CBoS) has revoked previous restrictions preventing banks from carrying out clearing transactions in U.S. dollars.

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U.S. dollar notes (Reuters/Athit Perawongmetha Photo)

Earlier this month, the U.S. Administration permanently lifted 20-year-old economic sanctions that have seriously damaged Sudan’s trade, investment and banking transfers.

The new regulation issued by the policy department at the CBoS Sunday allows all banks to carry out business transactions in all convertible currencies including the U.S. dollar.

The new regulation, seen by Sudan Tribune, cancels the November 17, 1997, decision of the CBoS foreign exchange department which prevents the use of U.S. dollar in clearing transactions.

It also revokes the decision issued by the CBoS policy department on 24 December 2007 which pertains to the use of other currencies except for the U.S dollar.

The new regulation further allows the banks to deposit their legal foreign currency reserve with the CBoS in all convertible currencies including the US Dollar.

Meanwhile, the CBoS said the new set of monetary and banking measures and policy reforms aims to control liquidity, maximize export revenues, and decrease imports to stabilize the exchange rate and reduce inflation.

It added the reforms also aims to curb foreign currency speculations in the black market in order to restore confidence in the banking system following the full lifting of the U.S. economic embargo.

The CBoS urged all banks to expand the networks of their foreign correspondence including the U.S. banks, demanding them to carry out transactions in all convertible currencies including the dollar.

Last week, the CBoS announced that Sudanese banks have actually begun to receive international transfers from banks in the United States and Europe.

(ST)