?The banking system: a murderer or a victim------- Dr.. Ali Mohamed Osman Al-Iraqi

?The banking system: a murderer or a victim
Dr.. Ali Mohamed Osman Al-Iraqi
The rise of public opinion against banks during the last period due to the policy of draining liquidity and setting a ceiling for the daily withdrawal, and it reached a range of two days before the Eid al-Adha and began to crystallize serious claims to bring legal action against banks.
Let us here look at the matter in its broader context to the fact that the real thing happens in the banking system. It is known that the Central Bank is exposed to a number of burdens, the most important of which is its responsibility for the development of monetary policies and supervision of banks and ensure that they play positive roles in financing development and economic activity.
And if you consider the dear reader of the performance of the Central Bank of Sudan, especially during the last three years, you will not go over the fact that I recommend teaching them to students of economics and financial and banking sciences because of the models presented very strange and amazing.
The Bank of Sudan increased the money supply in the years 2015-2016 at a level that led to high inflation, as confirmed by the Bank in its annual report for 2016, and here is the text:
(Central Bank of Sudan and commercial banks contributed to the monetary expansion of 2016). The Bank of Sudan's payments to meet obligations on the Ministry of Finance increased from LE 10,746 million in 2015 to LE 20,976 million by the end of 2016 at a rate of 95.2% with a contribution of 37.7% In addition to the increase in the balance of the central government's temporary indebtedness of 3,500 dirhams. The increase in the price of gold purchase and sale increased from LE 12,237 million in 2015 to LE 18.935 million in 2016 at a rate of 54.7% and a contribution of 24.7% of the total increase in money supply. Million pounds by the end of 2015 to 8,900 million pounds by the end of 2016 by 154% and Bassam Mettle amounted to 19.9% ​​of the total expansion of the money supply for the year 2016). is over.
The text makes it clear that the central bank's management of money supply over the past two years is a major cause of the devaluation of the national currency. The bank increased its liquidity, not only to meet development projects, increase real production but to pay obligations to the Ministry of Finance and the central government's temporary debt balance by 57% Total Monetary Expansion for 2016.
The report monitored the rise in the difference between the price of buying and selling gold between 2015 and 2016 at a rate of 54.7% with a contribution rate of 24.7% of the total increase in money supply. , So it is normal to double the rate of inflation in 2016 than in 2015, exceeding 30%.
The Bank began in 2018 with volatile and volatile policies in the export and import quotas. We saw the publications canceling each other, which increased the degree of uncertainty in the investment climate, accompanied by a program to reduce liquidity led to the article we started to form public opinion against banks. Central Bank, but issued last week a decision to close all government accounts in banks and transfer them to its branches only.
And with our many observations on the performance of banks, but justice requires characterization of its role in this crisis as a victim as a citizen depositor and accountant completely. While some neutral assessment of the deterioration in monetary conditions is available, the responsibility of the Bank of Sudan will be the largest, the most serious and the most profound.
The reform begins with the exit of the Central Bank from the mantle of the Ministry of Finance and its subordination to the Presidency of the Republic, review performance and its effects on the economic conditions and the continuation of banking reform programs. Let us always remember that the national economy is very similar to the human body. Any change in sector or variable is reflected in varying degrees on the other sectors and variables. Policies and decisions should be subject to wide consultation; a consultation involving all relevant parties and interest.
 Source: Elaf newspaper