Sudan Central Bank: Frees Exchange Rates, Deregulates FX

• The Central Bank of Sudan issued Policy Management Circular No. 2026/16 on Monday, August 24, 2026.
• This circular grants commercial banks greater flexibility to adjust exchange rates and purchase export proceeds based on market supply and demand.
• Banks can now modify announced exchange rates at any time, provided they are publicly displayed on a price board before implementation.
• The new policy explicitly cancels previous directives, including a January 14, 2026, circular and an August 11 Reserves and Gold Management Circular.
• This move aims to organize Sudan's volatile foreign exchange market, which has seen significant national currency depreciation.

For legal professionals advising clients on cross-border transactions, trade, or investments in Sudan, this development necessitates a thorough review of existing strategies.

The Central Bank of Sudan announced a significant overhaul of its foreign exchange policy on Monday, August 24, 2026, through the issuance of a new directive, Policy Management Circular No. 2026/16. This pivotal move grants commercial banks substantially increased autonomy in managing currency transactions, effectively deregulating key aspects of the Sudan foreign exchange market. The circular explicitly cancels several prior regulations, signaling a decisive shift towards a more market-driven currency regime.

Under the new framework, commercial banks now possess enhanced flexibility to adjust their publicly quoted exchange rates. This change is designed to allow these rates to fluctuate in direct response to the forces of supply and demand within the foreign exchange market. Furthermore, the Central Bank has empowered banks to acquire export proceeds at rates they determine, again aligning with prevailing market dynamics. This policy update underscores the Central Bank of Sudan's commitment to its ongoing strategy of exchange rate liberalization.

The recently issued Sudan Policy Management Circular 2026/16 outlines specific operational changes for financial institutions operating within Sudan. Commercial banks are now permitted to modify their announced exchange rates at any point throughout the trading day. A crucial condition, however, dictates that any revised rate must be prominently displayed on the bank's official price board before it can be implemented for transactions. This ensures transparency while allowing for dynamic pricing.

In a further move to liberalize the Sudan currency exchange controls, the circular explicitly revokes several previous directives. These include the Policy Management Circular issued on January 14, 2026, which had introduced amendments to Exchange Rate Circular No. 2022/15. Also annulled is the Reserves and Gold Management Circular dated August 11 of the preceding month, a measure that had been intended to bolster stability in the foreign exchange market. Importantly, the new circular clarifies that any previous directives that were themselves canceled by the now-revoked circulars will remain annulled, ensuring a clear regulatory landscape.

This policy shift by the Central Bank of Sudan comes at a critical juncture for the nation's economy. The foreign exchange market in Sudan has been characterized by significant volatility and a marked depreciation of the national currency when measured against a diverse basket of international currencies. The Central Bank of Sudan FX policy, as articulated in this latest circular, aims to bring greater organization to the exchange market and to strengthen the mechanisms through which foreign currency transactions are conducted, all based on the principles of supply and demand.

For legal professionals advising clients on cross-border transactions, trade, or investments in Sudan, this development necessitates a thorough review of existing strategies. The new, more flexible, and potentially volatile foreign exchange regime will directly impact pricing, risk assessment, and financial reporting for businesses engaged with the Sudanese market. Compliance officers in financial institutions must also update their internal policies regarding FX transactions and reporting requirements to align with these significant changes in Sudan banking regulations.

Lawyers advising clients on cross-border transactions, trade, or investments in Sudan must be aware of the new, more flexible, and potentially volatile foreign exchange regime, which impacts pricing, risk assessment, and financial reporting. Compliance officers in financial institutions should review and update internal policies regarding FX transactions and reporting requirements.

Source: Original reporting via Sudan Tribune