ABSTRACT
The financial system of the Sudan must be viewed as a necessary catalytic agent for continued economic progress and social development. The system blends together private and public sector priorities and needs in a balanced manner. Strategic considerations must be kept in mind when evaluating the role and importance of the financial sector and financial activity. Financial intermediaries are at the embryonic stage, and a stock exchange has yet to be conceived. The Bank of Sudan was empowered to exercise direct control over the commercial banks and to issue direct orders to them in cases where this is deemed useful for achieving monetary policy objectives. Several special-purpose banks play an important role in the Sudan in providing loans in credit sectors where there is an absence of alternative sources of funds. Agricultural credit in the Sudan falls into two broad categories, the traditional system of Shail and the non-traditional or modern credit system.
