Banking Expert: Feasibility of Security Measures to Besiege Dollar is Short

Sudan Events – Rehab Abdullah

Banking expert Dr. Abu Ubaida Ahmed Saeed said that there is a package of administrative decisions that could limit currency trade because they restrict the speed of exchanging the local exchange rate for a currency and purchasing the hoarded currency.
Adding in his speech to (Sudan Events) that monitoring the accounts to know the source of funds and their uses for bank clients can limit the movement of funds in the accounts for trading in foreign exchange and thus reduce the speed of speculation operations in foreign exchange.
However, Abu Ubaida saw that all of these are painkillers and not a cure, and he asked a question: Is speculation in foreign exchange driven by demand or supply?!, indicating that the required quantities of foreign exchange and the speed of obtaining foreign exchange is the main driver of speculation in foreign exchange prices, therefore he called on the Ministry of Trade and the Central Bank of Sudan to work to encourage export operations and limit import operations to reduce the demand for foreign exchange, stressing that the effectiveness and feasibility of administrative and security measures is short-term, calling for taking into account that the outbreak of war since April 2023 affected the volume of Sudanese exports and increased the amount of imports of civilian goods and military equipment. Therefore, he stressed the importance of restricting import operations, encouraging export production, working to create added value to exports instead of exporting them as a raw commodity, and taking advantage of the rise in global gold prices to increase gold exports.
He pointed out that the war also created a market for foreign currencies outside Sudan. All Sudanese who were displaced outside Sudan and who receive support from their families in the form of foreign currencies receive these currencies and were bought and sold outside Sudan, with the Sudanese pound averaging the buying and selling operations, with these foreign currencies going out to the countries to which the Sudanese were displaced to meet their needs in that country.
He pointed out the importance of adopting a war budget by reducing diplomatic missions and foreign exchange to reduce the demand for foreign currencies.