CHAPTER VI
BANKING
The Dual Banking System
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(1) The Central Bank of Sudan shall be responsible for the
formulation and conduct of monetary policy. All banking
institutions shall be subject to rules and regulations set by
the Central Bank of Sudan.
(2) A dual banking system shall be established, and shall
consist of an Islamic banking system that shall operate in
Northern Sudan and a conventional banking system to
operate in southern Sudan.
(3) There shall be established the Bank of Southern Sudan as a
branch of the Central Bank of Sudan to provide, inter alia,
conventional banking services.
Restructuring and Management of the Central Bank of Sudan
202 (1) The Central Bank of Sudan shall be restructured so as to
reflect the duality of the banking system in the Sudan. The
Central Bank of Sudan shall use and develop two sets of
banking instruments, one Islamic and the other
Conventional, to regulate and supervise the implementation
of a single monetary policy through:(a) an Islamic financing window in Northern Sudan under
a Deputy Governor of the Central Bank of Sudan
using Islamic financing instruments to implement the
national monetary policy in Northern Sudan, and
(b) the Bank of Southern Sudan, headed by a Deputy
Governor of the Central Bank of Sudan, to manage
the conventional window using conventional financing
instruments in implementing the same national
monetary policy in southern Sudan.
(2) The primary responsibility and mandate of the Central Bank
of Sudan shall be ensuring price stability, maintaining stable
exchange rate, sound banking system and issuance of
currency. The monetary policy shall rely primarily on marketbased instruments instead of administrative allocation of
credit.
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