Impact of Monetary Policy and its Transmission Mechanism in Sudan

Mahmoud Hamid Arabi Naeem (), Khalafalla Ahmed Mohamed Arabi () and Howida Adam El-Maeia ()
Additional contact information
Mahmoud Hamid Arabi Naeem: Ph.D. Candidate - College of Economics Sudan University of Science and Technology.
Khalafalla Ahmed Mohamed Arabi: Professor of Econometrics and Social Statistics College of Business, King Khalid University, Saudi Arabia.
Howida Adam El-Maeia: Assistant Professor of Economics College of Economics - Sudan University of Science and Technology.

Technium Social Sciences Journal, 2023, vol. 41, issue 1, 97-129

Abstract: The current paper investigates the impact of monetary policy and its transmission mechanism in Sudan, using the structural vector autoregressive (SVAR) model utilizing monthly data from Jan 2000 to the end of 2021. The findings show that Sudan's monetary transmission mechanism for credit and exchange rate channels performs poorly due to the salient features of the Sudanese economy and the financial and banking sector. The policy implication arising from this finding is; the role of the conduct approach for monetary policy should be clearly defined. Moreover, it is necessary to restore the credibility and reliability of the Central Bank of Sudan (CBOS) for conducting monetary policy. Sudan's monetary and credit policies must rely on indirect instruments, and the exchange rate should be determined by the market. The banking sector should be subjected to a program of reform and recapitalization. Other financial institutions, such as insurance companies and pension funds, must play a greater role in the economy.

Keywords: Banking sector; credit & exchange rate channel; transmission (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://techniumscience.com/index.php/socialsciences/article/view/8520/3155 (application/pdf)
https://techniumscience.com/index.php/socialsciences/article/view/8520 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tec:journl:v:41:y:2023:i:1:p:97-129

DOI: 10.47577/tssj.v41i1.8520

Access Statistics for this article

Technium Social Sciences Journal is currently edited by Tasente Tanase

More articles in Technium Social Sciences Journal from Technium Science
Bibliographic data for series maintained by Tasente Tanase ( this e-mail address is bad, please contact ).