Sudan Central Bank: Abolishes FX Price Cap, Grants Banks Autonomy

• On August 11, 2026, the Central Bank of Sudan abolished the foreign exchange price cap.
• Commercial banks are now permitted to purchase export proceeds at their own publicly announced rates.
• These changes aim to enhance stability in the foreign exchange market and revise previous regulations.
• The new policy specifically repeals a June 28, 2026 circular that mandated adherence to a central bank-set "injection exchange rate" for imports.
• The requirement for prior central bank coordination before using export proceeds for customer import financing has also been removed.

By eliminating the foreign exchange price cap and empowering commercial banks to independently purchase export proceeds at their own announced rates, the Central Bank of Sudan is signaling a move towards a more market-driven exchange rate mechanism.

On August 11, 2026, the Central Bank of Sudan announced a significant shift in its foreign exchange policy, aiming to bolster stability within the nation's currency market. These new directives represent a comprehensive review of prior regulatory frameworks. A pivotal change involves the abolition of the previously enforced price cap on foreign currency transactions. Concurrently, the Central Bank has granted commercial banks the authority to acquire export proceeds at exchange rates they publicly declare. This move is part of the Central Bank's ongoing efforts to refine its approach to managing the foreign exchange sector and to streamline the utilization of foreign currency resources across the economy. The decisions were communicated via an official circular, which was obtained by Sudan Tribune, bearing the signatures of Al-Mustafa Al-Jazouli Muhammad and Muhammad Abu Bakr Hassan Abdullah, both affiliated with the General Administration of Financial Markets' Reserves and Gold Department.

The recent announcement specifically rescinds a circular that had been in effect since June 28, 2026. This earlier directive had imposed a strict requirement on all banks to adhere to a specific "injection exchange rate" set by the Central Bank during periods when foreign currency was injected into the market, particularly for processing import requests. The intention behind the June 28 policy was to prevent the emergence of multiple exchange rates for identical transaction purposes, thereby aiming for a unified and controlled currency valuation. Furthermore, the now-repealed circular had also mandated that commercial banks seek prior approval and coordinate with the Central Bank before deploying any export proceeds to finance their clients' import demands. The latest policy effectively dismantles these restrictions, allowing banks greater autonomy in managing foreign currency flows derived from exports.

By eliminating the foreign exchange price cap and empowering commercial banks to independently purchase export proceeds at their own announced rates, the Central Bank of Sudan is signaling a move towards a more market-driven exchange rate mechanism. The previous system, which sought to impose a uniform "injection exchange rate" and required central bank coordination for the use of export earnings, was designed to exert tighter control over currency valuation and prevent arbitrage opportunities. The new policy, however, suggests a belief that greater flexibility for commercial banks and the removal of artificial price ceilings will ultimately contribute more effectively to the desired stability in the foreign exchange market. This shift could potentially lead to more transparent and responsive pricing, reflecting real supply and demand dynamics, and may also simplify the process for businesses involved in international trade by reducing bureaucratic hurdles related to foreign currency access and utilization.

Source: Original reporting via Sudan Tribune.