Merchants: Bank of Sudan policies ‘restrict commercial activity’

Market vendors in Sudan’s El Gedaref voiced concerns about the impact of the Central Bank of Sudan’s (CBoS) transfer limit policy on market dynamics, attributing a decrease in commercial activities to limited liquidity.

A market vendor in El Gedaref told Radio Dabanga that the CBoS decision to halve transfer limits is “hindering fund transfers and consequently diminishing commercial activity.” Merchants find themselves unable to transfer amounts exceeding SDG5 million per day, while customers are restricted in their ability to purchase goods.

In an announcement at the end of October, the CBoS set the daily maximum for transfers from a regular account at SDG3 million, with a maximum of SDG1 million per transaction, and a monthly ceiling of SDG50 million. The daily limit for a ‘privileged’ account was set at SDG5 million, with a monthly limit of SDG100 million.

The market vendor urged Sudan’s Central Bank to reconsider its policy, emphasising that such measures detrimentally affect the interests of merchants and disrupt market dynamics. “This will worsen the country’s economy, already grappling with a devastating war”, the merchant added.

At the end of September, Radio Dabanga reported that merchants and vendors at the markets of South Kordofan have resorted to barter trade and dealing with South Sudanese currency, because of the persisting liquidity crisis in the state.

Speaking to Radio Dabanga in September, banking expert Mohamed Esmat attributed the sharp decline in the value of the Sudanese Pound to the increasing demand for the dollar in pursuit of imports that require foreign currency.