CENTRAL BANK OF SUDAN

the bank was formed in 1960, four years after sudan's independence. it is located in khartoum and its governor is currently mohamed kheir el-zubeir. when sudan achieved independence in 1956, the creation of a central bank was a priority. a 3-man commission of experts from the united states's federal reserve, worked with sudanese government and finance specialists to create the law of the bank of sudan for 1959, and in 1960 the bank of sudan began operations. to establish the bank, the sudanese government nationalized the national bank of egypt's operations in the sudan (some seven branches), and combined them with the sudanese currency board. in addition to the normal duties of a central bank, which may include minting coins and issuing banknotes, managing a country's internal and external accounting, and setting monetary policy and interest rates, sudan's central bank is also responsible for fostering islamic banking. after sudan introduced islamic law (sharia) in 1984, the banking and financial industry changed its practices to conform with sharia. in 1993 the government established the sharia high supervisory board (shsb) to ensure compatibility of financial practices with islamic principles. in compliance with the shsb, the government is no longer selling treasury bills and government bonds; instead, the bank sells financial certificates that comply with islamic financial principles.

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