Simply: Bank of Sudan’s Decisions Regarding Liquidity – Pros and Cons

By: Dr. Adel Abdul Aziz Al-Faki
adilalfaki@hotmail.com

Today, the Central Bank of Sudan issued several decisions that it obligated commercial banks to implement immediately. The decisions stipulated reducing the value of daily cash withdrawals from banks to three million pounds, reducing the daily withdrawal ceiling through automated teller machines to fifty thousand pounds, and raising the ceiling for transfers through banking applications to 15 million pounds per day for the client.
It is clear that the Bank of Sudan, by its decision to reduce the amount of a customer’s daily withdrawal from banks or through ATMs, aims to reduce liquidity in the economy, as a means of combating speculation in the currency, a speculation that has led, among other reasons, to a significant deterioration in the value of the Sudanese currency against foreign currencies.
On the other hand, the Central Bank’s decision to raise the daily transfer ceiling through banking applications aims to facilitate internal trade operations, especially after the decline in the value of the Sudanese currency against foreign currencies, which made merchants, brokers, workers in the car trade and others forced to carry banknotes in cartons and bags, while they disappeared. gradually, small banknotes in denominations of fifty, one hundred and two hundred pounds were removed from circulation, to be limited to denominations of five hundred and one thousand pounds.
The decision to raise the transfer ceiling through Bankak and other banking applications also works to attract the monetary mass into the banking system, which enables it to increase its use in financing productive sectors.
In order not to exploit the increase in the transfer ceiling through applications for speculation in currency trading, very active accounts, whose owners have no apparent work in trade, industry or services, must be monitored by commercial bank compliance officials, as a duty imposed on banks by the Anti-Money Laundering and Anti-Terrorism Convention and Law.
The basis for restoring the Sudanese pound to its strength remains rational economic policies that encourage increasing production and productivity in the main export commodities, which are gold, cotton, sesame, Gum Arabic, and oilseeds. and ensuring the recovery of export revenues from these goods.
In this time of war, we call for the establishment of public joint stock companies in which the government’s contribution is no less than 75% to carry out export operations to restore value directly to the economy, and in this way we reduce the size of the gap in the trade balance between exports and imports, which amounts to minus 6 billion dollars at the very least, which is the main reason for the continuous decline in the value of the Sudanese currency against foreign currencies. God bless.