The Central Bank of Sudan has released its Monetary and Financial Policies for 2026, outlining a comprehensive roadmap aimed at stabilizing the economy, rebuilding confidence in the banking system, and laying the foundation for long-term recovery. Issued at the start of the year, the policy framework reflects Sudan’s exceptional economic circumstances while aligning the country’s financial system with regional and global standards.
According to the Bank of Sudan, the 2026 policy package is built around reforming and restructuring the banking sector, modernizing payment systems, strengthening financial inclusion, and accelerating digital transformation. These pillars are intended to restore macroeconomic balance, reduce inflationary pressures, and enhance exchange rate stability at a time when the national economy continues to recover from prolonged shocks.
Focus on productive financing and macroeconomic stability
A central theme of the 2026 policies is the redirection of financing toward productive sectors and priority economic activities. By encouraging credit flows into areas that support real economic output, the Bank of Sudan aims to strengthen the supply side of the economy, reduce structural inflation, and support gradual economic recovery.
The policies also emphasize improving the management of the national currency and enhancing exchange rate flexibility. These measures are designed to stabilize the foreign exchange market, rebuild confidence among economic actors, and support the restoration of macroeconomic equilibrium. In parallel, the Bank of Sudan has incorporated the principles of sustainable finance and green finance, reflecting global trends toward environmentally responsible and socially inclusive financial systems.
Building a resilient and inclusive financial system
The Bank of Sudan stated that the overarching objective of the 2026 policies is to build a more resilient and efficient banking and financial environment. This includes strengthening governance, improving risk management practices, and enhancing the overall soundness of banks and non-bank financial institutions. By doing so, the central bank seeks to enable the financial sector to absorb shocks, maintain financial intermediation, and support sustainable economic growth.
Financial inclusion and digital transformation are highlighted as key drivers of this effort. Modernizing payment system infrastructure and expanding access to formal financial services are seen as essential for rebuilding trust, increasing transparency, and integrating more citizens and businesses into the financial system.
Policy foundations and strategic references
The 2026 monetary and financial policies are grounded in a wide range of legal, strategic, and international references. These include the Bank of Sudan Act of 2002, as amended in 2012, and the Banking Business Regulation Act of 2004, which provide the legal framework for central banking and financial supervision.
The policy framework also draws on the evaluation of the Bank of Sudan’s 2025 policies, the State General Budget guidelines for 2026, and regional and continental commitments. These include the Monetary Cooperation Programme for African central banks and COMESA countries, trade liberalization requirements under the African Continental Free Trade Area, the Common Market for Eastern and Southern Africa, and the Greater Arab Free Trade Area.
International development and inclusion benchmarks also inform the policies, including the United Nations Sustainable Development Goals, the Maya Declaration of the Alliance for Financial Inclusion, and the Bank of Sudan’s Strategic Plan for 2026–2030. The policies further align with the State’s Digital Transformation Plan (3×3) and the Transitional Government of Hope Programme.
Strengthening payment systems and liquidity management
A major priority for 2026 is the strengthening of payment systems and liquidity management frameworks. The Bank of Sudan aims to enhance the efficiency and reliability of payment and settlement systems while ensuring banks can meet short-term obligations. Updated liquidity requirements will be aligned with the performance of payment systems to reduce operational risks.
The policies also call for greater transparency and disclosure of banks’ liquidity positions, regular liquidity stress testing, and the development of early warning systems for real-time monitoring of cash flows. These measures are intended to protect the banking sector from sudden liquidity shocks, reduce the risk of disruptions to financial intermediation, and establish a permanent framework for emergency liquidity management.
Supervisory and prudential reforms
On the supervisory front, the Bank of Sudan reaffirmed its commitment to international standards. The 2026 policies include the application of supervisory frameworks issued by the Basel Committee on Banking Supervision and the Islamic Financial Services Board. These standards will guide capital adequacy, risk management, and governance across the banking sector.
The central bank will continue adopting macroprudential policies and risk-based supervision, with a strong focus on assessing systemic risks. A comprehensive Asset Quality Review will be conducted to evaluate the condition of banks and classify them based on their financial viability, providing a clearer picture of sector-wide health.
Banking sector reform and restructuring
Reforming and restructuring banks and non-bank financial institutions is a cornerstone of the 2026 agenda. The policies call for the preparation of a comprehensive reform strategy that defines clear objectives, frameworks, and implementation pillars. This strategy is intended to remain flexible, allowing the Bank of Sudan to respond to evolving conditions and engage effectively with regional and international partners.
Improving the financial positions of banks is another priority. Measures include increasing capital, meeting financial soundness indicators, and strengthening governance structures. Under the new framework, financial institutions will be classified into four categories: sustainable institutions requiring no direct intervention, institutions requiring corrective measures, institutions requiring restructuring, and institutions subject to liquidation. Restructuring options may include mergers, acquisitions, or orderly liquidation, depending on each institution’s condition.
Policy implementation under exceptional circumstances
In introducing the 2026 policies, the Bank of Sudan emphasized that they are being implemented under exceptional conditions stemming from the April 15, 2023 war, which severely disrupted macroeconomic stability and weakened the banking system’s ability to function effectively. These challenges have heightened the importance of monetary and financial policy as tools for economic recovery.
Against this backdrop, the Bank of Sudan views its 2026 framework as a pragmatic response focused on strengthening the supply side of the economy, reallocating resources flexibly, and prioritizing actions that support recovery, stability, and sustainable growth. While the path forward remains complex, the policies signal a clear intent to rebuild Sudan’s financial system on stronger, more resilient foundations.
