Home | News    Monday 11 July 2011

Sudan central bank ceases control over the South’s financial system

separation
increase
decrease
separation
separation

July 10, 2011 (KHARTOUM) – The Central Bank of Sudan (CBoS) on Sunday announced a set of measures aimed at breaking off its control over the financial system of the South following its official independence yesterday.

The statement by CBoS said that South Sudan banks should be treated as foreign which means that any wire transfers cannot take place with Southern banks unless collateral is provided in the form of transferrable foreign currency used in the transaction.

CBoS governor also instructed a halt of clearing house with the branches of commercial banks operating in South Sudan as of July 9. He also ordered that checks issued by Southern banks would no longer be collected by Northern banks.

Southern banks will no longer have access to electronic banking network system, the statement said.

In a related issue, a significant drop in the exchange rate of Sudanese pound has been attributed to concerns over the South’s separation and its impact on the economy.

Agence France Presse (AFP) quoted a black market currency trader as saying that the dollar is now sold for 4.20 pound from 3.47 a week ago.

But CBoS said today that the exchange rate has declined after it injected hard currency into the banks and Forex bureaus and will continue to do so in the coming period.

North Sudan — where 80 percent of the 40 million Sudanese live — will lose 75 percent of the African country’s oil production of 500,000 barrels a day located in the South. Oil is the lifeblood for both economies.

The South will need Northern refineries and the country’s only port for the next years to sell its oil, but economists expect Northern oil revenues to gradually fall below the current 50-50 split.

Analysts say the loss of revenues will worsen a scarcity of foreign currency in North Sudan where importers struggle to get their hands on dollars. Sudan depends on foreign imports for food and many other articles, especially technology.

(ST)

Comments on the Sudan Tribune website must abide by the following rules. Contravention of these rules will lead to the user losing their Sudan Tribune account with immediate effect.

- No inciting violence
- No inappropriate or offensive language
- No racism, tribalism or sectarianism
- No inappropriate or derogatory remarks
- No deviation from the topic of the article
- No advertising, spamming or links
- No incomprehensible comments

Due to the unprecedented amount of racist and offensive language on the site, Sudan Tribune tries to vet all comments on the site.

There is now also a limit of 400 words per comment. If you want to express yourself in more detail than this allows, please e-mail your comment as an article to comment@sudantribune.com

Kind regards,

The Sudan Tribune editorial team.
  • 11 July 2011 09:53, by Aleu

    Khartoum government must relax, don’t try to increase desperation despite the break away for Southern Sudan. All these Old Ideas have been tried and they did not work for Khartoum government, this is for North Sudan government to throw away such an Old system if not then, many regions in Northern Sudan will break away piece by pieces until Khartoum will face some kind of isolation from the rest of none Arab within Sudan.

    Khartoum government Please relax,relax, relax and be the first people to support normalization between Southern Sudan nation and Northern Sudan nation.

    repondre message

    • 11 July 2011 15:49, by eye-of-an-eye

      My brothe Aleu,

      I know they have learn the little lession that’s why they are jumping up and down with tears, they should relax, the jouney is still long to bring them back to the line. I don’t know why they always jumping to dirty decissions?

      North should at this level to tease south like baby otherwise they will suffer more than that of today.

      repondre message

Comment on this article


 
 

The following ads are provided by Google. SudanTribune has no authority on it.


Sudan Tribune

Promote your Page too

Latest Comments & Analysis


Ateny flip-flopping, where is his loyalty to President Kiir? 2017-01-15 07:57:11 By Chuor Deng Chuor The world knows that Ateny Wek Ateny is supposed to be the Press Secretary and official spokesperson of President Salva Kiir. but the reality of the matter is that Ateny has (...)

Obama’s promises and pledges for Darfur went unheeded with lifting sanctions 2017-01-15 06:43:31 By Mahmoud A. Suleiman Barak Obama's Lifting of Sanctions off the genocidal regime of the National Congress Party (NCP) in Sudan is based on weak, unconvincing, pretty flimsy excuses and very (...)

The Final Betrayal of Sudan: Partial Suspension of Sanction 2017-01-14 21:31:35 “The Final Betrayal of Sudan: Obama administration’s lifting of economic sanctions; UN Ambassador Samantha Power justifying the move, claiming a ‘sea change’ of improvement in humanitarian access” (...)


MORE






Latest Press Releases


Abduction of S. Sudan Chief Justice’s aide illegal, should be condemned 2017-01-16 05:27:50 FOR IMMEDIATE RELEASE 16th January 2015 Legal Watch Associates South Sudan has learned with shock and dismay the abduction of Mr Gama Thomas, an aide to the Chief Justice, Chan Reech Madut. (...)

Carter Center welcomes new regulations on humanitarian affairs 2017-01-12 07:53:16 The Carter Center ATLANTA, Januarg 11, 2017 – The Carter Center welcomes the recent regulations issued by the government of Sudan aimed at facilitating humanitarian relief throughout the country (...)

Nertiti massacre in Central Darfur exposes the criminal nature of Bashir’s regime 2017-01-03 11:54:47 Sudan Democracy First Group Nirtiti massacre in Central Darfur exposes the criminal nature of Bashir's regime 2 January 2017 On the first day of 2016, and only one day after President Bashir's (...)


MORE

Copyright © 2003-2017 SudanTribune - All rights reserved.