Page 542 - 2016 - Vol. 40

system according to two systems which has been later
achieved by approving the Islamic banking system in the
north and the traditional banking system in the south of
Sudan before separation, so there is no doubt that these
transformations had a direct impact on the performance of
Sudan's economy, especially its closely associated with
monetary policy. The great turmoil in Sudan path of
economy and a radical shifts of the economy from one
system to another completely contrary, beside political
instability, internal conflicts and crises, which has been a
dominant feature in the Sudan since independence, these
are the reasons which prevented Sudan from making any
economic progress with great quality and value, in spite of
richness and diversity of resources that distinguishes Sudan
(Almosharaf and Tain, 2014).

The fiscal stance in Sudan has weakened since the
secession of South Sudan. In 2013, the government
introduced austerity measures focusing on reduction of fuel
subsidies by about 9.1 % (SDG 3.6 billion), maxi-
devaluation (29%). Wages were raised by 20% to
compensate for the ensuing higher cost of living. The
improvements in revenue collections from tariffs and
expenditure control through reducing subsidies, as well as

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