Bank Cash Reserves Reduction, Appreciated

Sudan Events – Rehab Abdullah

Banking experts welcomed the Central Bank of Sudan’s reduction of the authorized cash reserve ratio for banks from 20% to 15% as part of the monetary policy for the current year 2024.
Banking expert Dr. Mohammed Abdul Aziz justified reducing the banks’ cash reserves due to the repercussions of the war and the need for greater liquidity for operation and trade, as well as increasing the volume of credit to handle the current state of deflation.
He pointed out that the matter means compulsory depositing cash balances that are frozen in the central bank without interest as a source of safety for deposits, to enable the monetary authority to control liquidity in banks and their ability to grant loans.