Most of the material used in this paper was obtained while the author was a member of the Central Banking Mission from the Federal Reserve System to the Sudan from the beginning of December, 1956, through the middle of March. 1957. Other members of the Mission were Mr. Oliver P. Wheeler, Vice President, Federal Reserve Bank of San Francisco (Chairman), and Mr. Alan R. Holmes; both Mr. Holmes and the author were from the Federal Reserve Punk of New York. The author is indebted to the other members of the Mission–especially to Mr. Holmes -for valuable comments on an earlier draft of the paper. The author alone, however, assumes responsibility for the views expressed here–although some of the latter are obviously based on the joint work of the Mission as a whole. He also wishes to thank the Embassy of the Sudan, Washington, D.C., for assistance in obtaining additional material.