Central Bank Governor: Currency Replacement Is a National Concern and Contributes to Economic Stability

Port Sudan – Sudanhorizon

The Governor of the Central Bank of Sudan, Berae Sidiq, emphasized the importance and necessity of currency replacement at this stage, outlining the procedural steps and the timeline for the replacement process.

During his meeting with the general managers of banks in Port Sudan on Monday, the Governor stated that currency replacement is a national concern and contributes to supporting the government’s efforts to stabilize the national economy.

Berae explained that the replacement process comes under exceptional and complex circumstances, with the replacement period set from December 10th to the 23rd of this year. He noted that based on past replacement experiences, the period is considered sufficient and considerate of the country’s conditions. After the time frame, the replaced denominations (1,000 and 500 Sudanese pounds) will no longer be valid for transactions in the targeted states for replacement.

He added that in the remaining states, the replacement will occur when the government decides, and the currently circulating currency will remain valid within their borders.

Berae stressed the importance of banks facilitating and simplifying the procedures for opening bank accounts for the public, ensuring the integration of digital transformation, and involving citizens in financial inclusion to benefit from banking services.

The Governor urged citizens to take advantage of the replacement period to open bank accounts and deposit their money, highlighting that having money in the banks offers mutual benefits for both the citizens and the banks. He explained that citizens ensure the safety of their funds and can access them for withdrawals or transfers, while banks benefit from the availability of deposits and liquidity.

Berae also mentioned that the Central Bank’s efforts to link banks with the national clearing system are nearing completion. He reassured the banks that 2025 will witness significant banking transformations under the Central Bank’s leadership.

Furthermore, the Governor promised to support banks that have stood by the country during its crisis and have borne the risks of war for the nation’s sake, stating, “Sudan will never forget their support for the Sudanese people.”

He also pointed out that the strategic commodity portfolio is not exclusive to the Central Bank of Sudan or the Bank of Khartoum. Participation in the portfolio’s capital is open to all banks, and both foreign and Sudanese companies can invest in its activities. He clarified that the portfolio’s role is not to import goods but to provide foreign currency for importers, avoiding the need to turn to the parallel market.

On his part, Deputy Governor of the Central Bank, Salah El-Din Sheikh Kheder, noted that the currency replacement decision is a state decision to address the impacts of the war and is non-traditional, as it will be carried out through bank accounts. He instructed banks to address any issues regarding account openings and to contribute to public awareness efforts for opening accounts. He explained that previous currency replacement experiences were technical matters handled by the Central Bank. Still, as it is a state concern, many regulatory, security, and service agencies are involved.

He acknowledged that obstacles might arise but emphasized the need for everyone to work together to overcome them in order to ensure the success of the currency replacement process. He added, “The army is fighting on the battlefield for the nation, and we must support these efforts by maintaining the stability of the country’s economy.”

He confirmed that the Central Bank deals with banks impartially and that freedom in banking operations and competition is open to all.

Meanwhile, Deputy Governor of the Central Bank, Mohamed Osman Ahmed Mohamed Kheir, highlighted that the replacement process is happening under exceptionally complicated conditions. He added, “In regions that are not targeted for replacement, the 1,000 and 500 Sudanese pound denominations will remain valid and redeemable.”

He continued, “However, for the banks, they will not accept the 1,000 and 500-pound denominations due to considerations that benefit both the citizens and the banks, as the regions targeted for replacement have security monitoring that helps ensure counterfeit or stolen money does not enter the banking system.”

In response, the general managers of the banks participating in the meeting expressed their full readiness to ensure the success of the replacement process. They raised some inquiries and discussed various topics to ensure the facilitation of account openings for the public and the integration of banking applications through the electronic platform.

They also emphasized the importance of activating banking applications to serve customers and ensuring compliance with anti-money laundering and counter-terrorism financing regulations through the banks’ compliance officers and support units.

Additionally, they requested an extension of working hours during the replacement period. They stressed the importance of customers opening bank accounts and setting a time limit for transfers via the “Siraj” system to ensure timely funds transfer.