Banking Expert: CBS Decisions Signal End of Tolerance for Violations

Sudanhorizon – Hala Hamza

Banking expert Numan Yusuf Muhammad has described the Central Bank of Sudan’s (CBS) decisions to suspend several bankers from import and export activities, terminate the services of some employees, refer others for investigation, and suspend others from conducting foreign trade operations until regulatory standards are met, as “one of the most significant measures” the bank has taken during the war.

Numan stated that these decisions reflect a growing awareness that the stability of the foreign exchange market begins with stricter oversight of the banking system, as it is the primary gateway for foreign currency flows, and signal the end of the era of leniency towards violations of foreign exchange regulations.

He pointed out that intensifying oversight of imports and exports will contribute to curbing some practices that have harmed the foreign exchange market, enhance banks’ discipline in managing foreign trade operations, and restore some confidence in the Central Bank’s regulatory role.

Youssef anticipated that these measures would initially be met with caution and a slowdown in some banking transactions due to the tightened controls. He emphasized that the success of these measures hinges on the implementation of a comprehensive economic and banking reform program, their ability to increase export revenues, strengthen banks’ compliance with foreign exchange regulations, and reduce the gap between the official and parallel market exchange rates. He stressed that the success of these measures is not determined by the number of employees held accountable or banks temporarily suspended from certain activities.

Youssef considered the Bank of Sudan’s measures a step in the right direction toward restoring institutional discipline within the banking sector. However, he maintained that they represent only the beginning of a broader reform process requiring coordination between monetary, fiscal, and productive policies.

He asserted that exchange rate stability and restoring confidence in the Sudanese economy will not be achieved through oversight alone, but rather through rebuilding the real economy and enhancing its capacity to generate sustainable foreign currency reserves.

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