Sudan’s Central Bank agreed with the country’s Union of Chambers of Commerce to immediately deposit their money in the banks.
This move came in line with an initiative launched in an effort to resolve the liquidity crisis, which shook the customers’ confidence in the banking system and contributed to the outbreak of mass popular protests.
The initiative stipulates that businessmen deposit their money in banks, provided that the banks would commit to return the funds upon request.
The deal was signed during a large ceremony by Governor of the Central Bank of Sudan Mohamed Khair al-Zubair and Head Federation of Sudanese Businessmen and Employers Saud al-Barir in the presence of the Head of the country’s Bankers’ Union Abbas Abdullah and directors of all the banks operating in Sudan.
Zubair stressed that all the money paid in cash by the employers to the banks will be put as deposit and can be redeemed upon request.
This initiative confirms the national spirit of the Sudanese private sector to confront the crises, Zubair stated, adding that it has set a strong example to address the liquidity crisis in the banks.
The country has been facing a liquidity crisis for more than nine months now due to the severe shortage of foreign exchange reserves and the reluctance of many depositors, fearing the inability to withdraw their money.
Banks set a threshold for withdrawals from deposits at 2,000 pounds (about $42), but the amount was reduced until it was completely forbidden by some banks in the past few days.
In this context, Sudanese economist Kurashi Bukhari told Asharq Al-Awsat that the deposit initiative may enhance confidence in the banking system.
He explained that this action will limit, even if slightly, the growing liquidity crisis faced by the country.
Bukhari said that initiative serves as an attempt to address the mistake in which the Central Bank of Sudan had made when it established a mechanism that did not have a foreign exchange reserve to meet the requirements of customers.
