Abdul Azim Ali Writes: Relieving Governor and Curbing Dollar

Will the relieve of the governor or the dismissal of all the leaders of the Bank of Sudan curb the rise of the dollar in light of the reality of a country that is in the conditions of a war imposed on it, which has extended for a year and is still continuing? The Bank of Sudan tirelessly continued to bear its financial burden alone. It suffices to mention that it continued to bear the monthly salaries of all the regular forces (army, police, security and intelligence) and in excess of one hundred billion pounds, i.e. (one hundred trillion pounds in the old days), which is basically a burden that the Bank of Sudan is not supposed to carry. Considering that it is a commitment that is supposed to be the mission of the Ministry of Finance, and it is known that it does not accept it due to the cessation of most economic activities across the country as a result of the war, and consequently tax, customs and other revenues have declined, and it is known that the Bank of Sudan, in normal circumstances, would not have accepted to bear that burden because it is known that it is not its mission by law, and secondly, because the negative effects of such massive liquidity pumping on the inflation rate and the price of the currency are known and inevitable. However, the Bank of Sudan senses that Sudan is waging a battle of dignity and existence, so it cannot let the state, the regular forces, and all… The fighting factions were able to meet their salaries, regardless of the consequences, and also to bear all the costs of the needs of the war in which the army did not feel, throughout the year, the need or interruption of ammunition, supplies, or any other needs. In addition to that, the bank also continued to bear all the material costs in foreign exchange for the diplomatic movement in general and at all levels. .
Also, why does the dollar not rise, with all this enormous burden of salaries, which – as we mentioned, is not its mission? And the Bank of Sudan was also faced with the obligation to allocate resources in foreign exchange for all the basic and strategic needs of the state from the balance of its reserves that had been built by rational policies in normal conditions before the war to which the current governor, his deputy, and all the leaders of the Bank of Sudan had contributed before the war. That was when the bank dropped the price of the dollar from nearly a thousand pounds to about 550 pounds, and people began rushing to sell the dollar to banks and money exchanges, to the point where the Bank of Sudan itself had opened additional windows. To buy dollars in some of its branches. The Bank of Sudan also announced daily that it was ready to meet any requests for dollars for imports and other things, and at that time all currency traders and speculators retreated, and the Bank of Sudan would have dropped the inflation rate from the number that had approached 400 percent to 83 percent in just two years, and had it not been if the war did not break out, the bank would have achieved the target number of decline, which is 25 percent, and for those who do not know, the bank would have achieved all of this without any external financial assistance from the International Monetary Fund or an international bank or from regional funds or from friendly countries or others, and To the point that the employees of these institutions were surprised at how this success in monetary policy and exchange rate policy was achieved and without the availability of sufficient reserves in foreign currency and without external financial aid. We remember that even the governor of the Central Bank of Egypt was surprised by what happened, and the former governor inquired. About that, and now we also say again, what makes the dollar not escape and there is no estimated production or export activity across the country due to the war and its many obstacles, and also that there is not a single country that has aided or supported Sudan with financial support? So what makes the dollar not refuse? Containment? Isn’t the matter the results of supply and demand interactions in its simplest economic and municipal concept? That is, we are currently living in the reality of a huge and continuous demand for the dollar as a result of the war and its consequences and the limited and declining supply? So how can we contain the dollar in light of such a reality – and its removal, of course, is not in the hands of the Bank of Sudan? And of course here too the role of speculation does not fall due to the money looted as a result of the chaos and the reality of the war that has prolonged. The country, of course, is also not asked about it, and it is not caused by the Bank of Sudan. Rather, the Bank of Sudan is now the party most affected by it and the most unfortunate to bear its horrific financial consequences.
We only thought we would clarify these statements to show that the imbalance and rise in the price of the dollar was not the result of a lack of vision, a policy error, or inefficiency in managing the matter, as much as Sudan and the Bank of Sudan, for an entire year, continued to operate in the reality of a war economy and not a natural reality, and there is no such thing. As we mentioned, which institution, country, sister or alleged friend has extended a helping hand to it with financial support? On the contrary, among them are those who are fighting it by stifling its economy and restricting it?
The final conclusion from what was mentioned: Changing the governor or even changing every leader of the Bank of Sudan will not be “Moses’ stick” that would fulfill the longings of containing the dollar and lowering its price in light of the exceptional reality of war that cost the Bank of Sudan as much as it could bear, and of course that does not mean To say (no to the war) that was imposed on us, but rather to say welcome to it, and Sudan and the Bank of Sudan are for it. He will not hesitate to be patient in bearing its burdens, no matter how great they are, until the country is purified forever from the filth and abomination of those oppressive aggressors. After that, let the account be (born) in evaluating the performance, generosity, and competence of the leaders of the Bank of Sudan when they perform under normal circumstances.
May God protect the country and the people.