Sudan Central Bank: Reaffirms Foreign Currency Imports Supply

• The Central Bank of Sudan (CBOS) confirmed on August 29, 2026, its continued provision of foreign currency for import financing.
• This reassurance follows concerns after Circular No. 16/2026, issued August 24, 2026, granted banks greater exchange rate flexibility.
• The new policy led to an unprecedented depreciation, with the US dollar reaching 6400 Sudanese Pounds by August 27, 2026.
• The CBOS clarified on August 28, 2026, that the circular does not signify its exit from the foreign exchange market or a halt to currency injections.
• The bank will continue to intervene to stabilize the market and meet essential economic needs, provided import requests meet regulations.

The Central Bank of Sudan explicitly stated that the introduction of Circular No. 16/2026 should not be interpreted as its withdrawal from the foreign exchange market or a cessation of its foreign currency injection activities.

The Central Bank of Sudan (CBOS) announced on August 29, 2026, its continued commitment to supplying foreign currency to meet import demands. This declaration aims to alleviate concerns that arose following a recent policy shift, which granted commercial banks greater flexibility in setting exchange rates and acquiring export proceeds. The CBOS's reaffirmation comes amidst a period of significant depreciation for the local currency, which had triggered apprehension regarding the availability of foreign exchange for critical import financing. This clarification from the Central Bank of Sudan is crucial for businesses and individuals reliant on imported goods, signaling that the institution will maintain its role in supporting the flow of essential commodities into the country.

This move by the Central Bank of Sudan to continue its foreign currency injection operations is a direct response to market anxieties. The earlier decision, which empowered banks with more autonomy in the foreign exchange market, had been perceived by some as a potential withdrawal of the central bank from its role in stabilizing the Sudanese Pound and ensuring adequate foreign currency provision for essential goods. The CBOS is now actively clarifying its ongoing involvement to maintain market confidence regarding Sudan Central Bank foreign currency imports.

The policy that prompted these concerns was formalized in Circular No. 16/2026, issued by the Central Bank of Sudan on the preceding Monday, August 24, 2026. This circular effectively superseded several prior directives, granting commercial banks significantly broader discretion to adjust their declared exchange rates. Furthermore, it allowed banks to purchase export proceeds based on the prevailing dynamics of supply and demand within the foreign exchange market. This marked a notable departure from previous, more controlled exchange rate mechanisms, aiming to introduce greater market-driven pricing and influence Sudan import financing policy.

The immediate aftermath of this regulatory change saw an unprecedented decline in the value of the local currency. By the close of trading on Thursday, August 27, 2026, just days after the circular's issuance, the US dollar was reportedly trading at 6400 Sudanese Pounds. This sharp depreciation underscored the volatility introduced by the new flexibility and highlighted the urgent need for the Central Bank of Sudan to clarify its long-term strategy for Sudan foreign exchange market stability, especially concerning its role in import financing policy.

In a press release issued late on Friday, August 28, 2026, the Central Bank of Sudan explicitly stated that the introduction of Circular No. 16/2026 should not be interpreted as its withdrawal from the foreign exchange market or a cessation of its foreign currency injection activities. The CBOS affirmed its intention to continue intervening in the market, adhering to established policies and procedures. This ongoing intervention is designed to achieve stability in the foreign exchange market and ensure that the fundamental needs of the Sudanese economy are met, particularly concerning import financing. This commitment directly addresses the practical implications for those involved in Sudanese import/export and trade finance.

The CBOS further clarified that it would continue to provide foreign currency through the banking system, responding to requests from banks that aim to finance their importer clients' requirements. Crucially, these requests must fully comply with all prescribed regulations and procedures, emphasizing the importance of adherence to the Sudan banking sector FX provision guidelines. This commitment is particularly vital given the deep crisis afflicting the Sudanese economy, which is characterized by severe exchange rate imbalances, a substantial disparity between official and parallel market rates, and the persistent depreciation of the national currency. The Central Bank of Sudan's FX injection remains a critical tool in this challenging environment, aiming to bridge the gap between demand and supply for foreign exchange.

This announcement clarifies the Central Bank's continued commitment to supplying foreign currency for imports, despite recent policy shifts granting banks greater exchange rate flexibility. Lawyers advising clients engaged in Sudanese import/export or trade finance should note this reaffirmation, as it impacts the availability of foreign exchange and compliance considerations for import transactions.

Source: Original reporting via Sudan Tribune