News from Khartoum
Financial restrictions on CSOs foreign currency funds
Central Bank of Sudan issues new restrictions on foreign currency accounts of organizations
The Central Bank of Sudan has issued a set of new regulations (CBOS foreign accounts regulation of January 2020) which restricts the use and access of Civil Society Organizations (CSOs) to their foreign currency accounts held with local banks. It instructs local banks to only allow their CSO clients access to 50% of any incoming funds or deposits made to their foreign currency accounts, the remaining 50% is to be sold to the Central Bank of Sudan at the official exchange rate and the equivalent amount in Sudanese Pounds to be deposited to the CSOs local currency account.
The regulation goes even further and only allows payments from the CSOs foreign currency account towards specific purposes, these being -
- the import of goods related to activities for which funds have been received,
- payments to foreign workers and consultants employed with the organization,
- currency sale to the banks, and
- cash withdrawals to meet travel costs and which are to be supported with adequate supporting documentation..