Bank of Sudan is the central bank

Central bank

A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...

 of the Sudan. The bank was formed in 1960, four years after Sudan's independence. It is located in Khartoum

Khartoum

Khartoum is the capital and largest city of Sudan and of Khartoum State. It is located at the confluence of the White Nile flowing north from Lake Victoria, and the Blue Nile flowing west from Ethiopia. The location where the two Niles meet is known as "al-Mogran"...

 and its governor is currently Mohamed Kheir El-Zubeir.

History

When Sudan achieved independence

Independence

Independence is a condition of a nation, country, or state in which its residents and population, or some portion thereof, exercise self-government, and usually sovereignty, over its territory....

 in 1956, the creation of a central bank was a priority. A 3-man commission of experts from the United States's Federal Reserve, worked with Sudanese government and finance specialists to create the Law of the Bank of Sudan for 1959, and in 1960 the Bank of Sudan began operations. To establish the bank, the Sudanese government nationalized the National Bank of Egypt

National Bank of Egypt

- in arabic National Bank of Egypt is the oldest and largest bank in Egypt, and has 405 branches within the country, including 131 in Cairo. It has assets of L.E. 185.3 bn., total deposits of L.E. 155.2 bn., and total loans and advances of L.E. 83 bn...

's operations in the Sudan (some seven branches), and combined them with the Sudanese currency board.

In addition to the normal duties of a central bank, which may include minting coins

Mint (coin)

A mint is an industrial facility which manufactures coins for currency.The history of mints correlates closely with the history of coins. One difference is that the history of the mint is usually closely tied to the political situation of an era...

 and issuing banknotes, managing a country's internal and external accounting, and setting monetary policy

Monetary policy

Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. The official goals usually include relatively stable prices and low unemployment...

 and interest rates, Sudan's central bank is also responsible for fostering Islamic banking

Islamic banking

Islamic banking is banking or banking activity that is consistent with the principles of Islamic law and its practical application through the development of Islamic economics. Sharia prohibits the fixed or floating payment or acceptance of specific interest or fees for loans of money...

.

After Sudan introduced Islamic law (Sharia

Sharia

Sharia law, is the moral code and religious law of Islam. Sharia is derived from two primary sources of Islamic law: the precepts set forth in the Quran, and the example set by the Islamic prophet Muhammad in the Sunnah. Fiqh jurisprudence interprets and extends the application of sharia to...

) in 1984, the banking and financial industry changed its practices to conform with Sharia. In 1993 the government established the Sharia High Supervisory Board (SHSB) to ensure compatibility of financial practices with Islamic principles. In compliance with the SHSB, the government is no longer selling treasury bills and government bonds; instead, the Bank sells "Financial Certificates" that comply with Islamic financial principles.

Banking history

In 1965, Bank of Sudan and Crédit Lyonnais

Crédit Lyonnais

Crédit Lyonnais is a historic French bank. In the early 1990s it was the largest French bank, majority state-owned at that point. Crédit Lyonnais was the subject of poor management during that period which almost led to its bankruptcy in 1993...

 formed a joint-venture bank name Al/An/El Nilein Bank (Nile Bank). Crédit Lyonnais contributed the two branches it had developed since it first entered Sudan in 1953. Bank of Sudan took 60 percent of the shares in Nilein Bank, and Crédit Lyonnais took 40 percent.

In 1970, the Sudanese government nationalized all the banks in the Sudan, changed the names of several, and put them under the Bank of Sudan. Barclays Bank, which had an extensive network of 24 branches, became the State Bank of Foreign Trade, and then Bank of Khartoum

Bank of Khartoum

Bank of Khartoum , with 17 branches in the capital and 33 branches nationwide, is the largest Bank in Sudan. It is also the commercial bank with the oldest continuous history in the country.-History:...

. The six branches of Egypt's Bank Misr became People's Cooperative Bank. The four branches of Jordan's Arab Bank

Arab Bank

Arab Bank is one of the largest financial institutions in the Middle East. Established in Jerusalem in Palestine in 1930 as a small bank, it has evolved into a group with the largest worldwide Arab network with over 500 branches in 30 countries on five continents, participating in financial markets...

 became Red Sea Bank or Red Sea Commercial Bank (accounts differ). Commercial Bank of Ethiopia

Commercial Bank of Ethiopia

The Commercial Bank of Ethiopia is the largest commercial bank in Ethiopia and had about Birr 73.7 billion , in assets at the end of June 2010. At the time, the bank held approximately 63.5% of deposits and about 38% of all bank loans in the country...

's one branch became Juba Commercial Bank. National and Grindlays Bank

Grindlays Bank

The Grindlays Bank was a major British overseas bank established in 1828.It operated mainly in British colonies, especially British India. After decolonization, it was a major foreign bank in India, Pakistan and other West Asian countries. As ANZ Grindlays Bank, it was for a while the largest...

, which in 1969 had taken over the four branches that Ottoman Bank had established after it entered in 1949, became Omdurman Bank. In 1973 Red Sea Bank and People's Cooperative Bank were merged into Omdurman Bank. Then in 1984 Omdurman Bank merged with the Juba Commercial Bank to form Unity Bank.

In 1993, Al/An/El Nilein Bank merged with the Industrial Bank of Sudan to form Nilein Industrial Development Bank. In 2006, Dubai-based Emaar Properties and Amlak Finance acquired a 60% stake in Sudan’s El Nilein Industrial Development Bank; the Bank of Sudan retained a 40% stake.

Operations

As far as the current state of the Sudanese banking and financial situation is concerned,the bank's "About Bank of Sudan" section states:

Since the beginning of the Three Year Economic Program (1990–1993), the Bank of Sudan has carried out policies that aim to revitalize the Sudanese economy

Economy

An economy consists of the economic system of a country or other area; the labor, capital and land resources; and the manufacturing, trade, distribution, and consumption of goods and services of that area...

, the last of which was the credit policy of 2000 which was based on the following:

1. Emphasizing supply side measures and monetary stability better to utilize banking resources by stressing financing of priority economic priority sectors, and continuation of streamlining general supply policies.
2. Continuation of the social support program for the benefit of the poor families in accordance with the national mobilization project for social security
   Social security
   Social security is primarily a social insurance program providing social protection or protection against socially recognized conditions, including poverty, old age, disability, unemployment and others. Social security may refer to:...
   
    and for the improvement of productivity.
3. Continuation of financing public corporations through the banks without recourse to the Bank of Sudan for direct financing.
4. Allowing the commercial banks to offer financing in foreign exchange
   Foreign exchange market
   The foreign exchange market is a global, worldwide decentralized financial market for trading currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends...
   
    according to the regulations issued by the Bank of Sudan.

Branches of the Bank of Sudan

As the country of Sudan is about 1½ times the area of the state of Alaska

Alaska

Alaska is the largest state in the United States by area. It is situated in the northwest extremity of the North American continent, with Canada to the east, the Arctic Ocean to the north, and the Pacific Ocean to the west and south, with Russia further west across the Bering Strait...

 in the United States, the central bank has a branch bank

Branch (banking)

A branch, banking center or financial center is a retail location where a bank, credit union, or other financial institution offers a wide array of face-to-face and automated services to its customers....

 system:

• The Main Branch — Khartoum
• Wad Madani Branch
• Kosti Branch
• Atbara Branch
• El Gadarif Branch
• Nyala Branch
• Juba Branch
• El Obied Branch
• Dongola Branch
• Port Sudan Branch
• El Fashir Branch
• Wau Branch
• Yay Branch
• Malakal Branch

Reem

List of governors of the Bank of Sudan

• Mamoun Ahmed A. Behairy 1959–1963
• Elsayid Elfeel 1964–1967
• Abdelrahim Mayrgani 1967–1970
• Abdelateef Hassan 1970–1971
• Awad Abdel Magied Aburiesh 1971–1972
• Ibrahim Mohammed Ali Nimir 1973–1980
• Elsheikh Hassan Belail 1980–1983
• Faroug Ibrahim Elmagbool 1983–1985
• Ismail el-misbah Mekki hamad 1985–1988
• Mahdi Elfaky Elshaikh 1988–1990
• Elshaik SidAhmed Elshaikh 1990–1993
• Sabir Mohammed El-Hassan 1993–1996
• Abdall Hassan Ahmed 1996–1998
• Sabir Mohammed El-Hassan 1998-2011
• Mohamed Kheir El-Zubeir since 2011

Sources

Kaikati, Jack G. 1980. The Economy of Sudan: A Potential Breadbasket of the Arab World? International Journal of Middle East Studies 11, 99-123.

See also

• Central banks and currencies of Africa
  Central banks and currencies of Africa
  There are two African currency unions associated with multinational central banks; the West African Banque Centrale des Etats de l'Afrique de l'Ouest and the Central African Banque des Etats de l'Afrique Centrale...
  
  
• Economy of Sudan
  Economy of Sudan
  Until the second half of 2008, Sudan's economy boomed on the back of increases in oil production, high oil prices, and large inflows of foreign direct investment. GDP growth registered more than 10% per year in 2006 and 2007. From 1997 to date, Sudan has been working with the IMF to implement...
  
  
• List of central banks
• Sudanese dinar
  Sudanese dinar
  The dinar was the currency of Sudan between June 8, 1992 and January 10, 2007. Its ISO 4217 code is "SDD". It is now replaced by the pound.-History:...
  
  , the former currency
• Sudanese pound
  Sudanese pound
  The Sudanese pound is the currency of Sudan and also used in South Sudan until finalization of the introduction of the South Sudanese pound. Both Arabic and English names for the denominations appear on the country's banknotes and coins. On 24 July 2011, Sudan launched a new currency...
  
  , the current currency

External links

• Official site: Bank of Sudan