- published: 03 Jan 2014
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Bank of Sudan is the central bank of the 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.
Sudan (i/suːˈdæn/ or /suːˈdɑːn/;Arabic: السودان, as-Sūdān), officially the Republic of the Sudan (Arabic: جمهورية السودان, Jumhūrīyat as-Sūdān), sometimes called North Sudan, is an Arab state in North Africa (sometimes also considered to be part of the Middle East). It is bordered by Egypt to the north, the Red Sea to the northeast, Eritrea and Ethiopia to the east, South Sudan to the south, the Central African Republic to the southwest, Chad to the west, and Libya to the northwest. The population of Sudan is a combination of indigenous inhabitants of Nile Valley, and descendants of migrants from the Arabian Peninsula. Due to the process of Arabisation common throughout the rest of the Arab World, today Arab culture predominates in Sudan. The majority of the population of Sudan adheres to Islam. The Nile divides the country between east and west sides.
The people of Sudan have a long history extending from antiquity which is intertwined with the history of Egypt. Sudan suffered seventeen years of civil war during the First Sudanese Civil War (1955–1972) followed by ethnic, religious and economic conflicts between the Muslim Arab northern Sudanese and the mostly animist and Christian Nilotes of Southern Sudan. This led to the Second Sudanese Civil War in 1983. Because of continuing political and military struggles, Sudan was seized in a bloodless coup d'état by colonel Omar al-Bashir in 1989, who thereafter proclaimed himself President of Sudan. The civil war ended with the signing of a Comprehensive Peace Agreement which granted autonomy to what was then the southern region of the country. Following a referendum held in January 2011, South Sudan seceded on 9 July 2011 with the consent of Sudan's President al-Bashir.