Sudanese Currency Printing: Facing Obstacles

Economists have reacted differently to the recent remarks made by Burai Al-Sadiq, the governor of the Central Bank of Sudan, regarding plans to change the currency. He acknowledged that the process is extremely complex and requires substantial financial resources, which are currently being allocated to the war effort.

Banking expert Waleed Dalil criticized the governor’s announcement, stating that currency change should be considered a military secret, especially under the current circumstances.

Banking expert Ayman Ahmed Mohamed also expressed disapproval of the governor’s statements, citing his surprise in a WhatsApp group called “Sudan Economic Forum.” He explained that the governor had previously denied plans to change the currency, pointing out the high costs and the fact that stolen money had already been laundered. He added, “Now he says we will change it, but only after securing resources.” Ayman also noted that the governor linked the plan to the launch of a wallet system, which is expected to cause a decline in the dollar’s value, potentially reaching a target rate of 1,200 Sudanese pounds.

Ayman speculated that the governor may have misspoken but believed the statement was intended to influence the exchange rate.

Economist Dr. Othman Al-Badri emphasized that currency change is a critical macroeconomic issue, not merely a financial one. He stressed the need for thorough studies and agreed with Waleed Dalil that such a decision, given the current state of the country, should be treated as a high-level state secret and handled with utmost discretion.

Economist Omar Mudawi commented that the governor is out of touch with reality. In a contribution to the “Employers’ Union” WhatsApp group, he estimated that changing the currency would cost approximately $300 million. He also criticized the failure to heed experts’ calls to abolish large denominations (500 and 1,000 pounds) after banks were looted by the Rapid Support Forces, suggesting this could have mitigated some of the damage.

Meanwhile, Sudanese Employers’ Union President Muawiya Abaizeed warned of the negative consequences of discussing currency change, stating that it should remain confidential to prevent a spike in the dollar’s value. He explained that individuals holding Sudanese currency would rush to exchange it for dollars, driving up inflation and, consequently, prices, which would disproportionately affect the public.

It’s worth noting that 121 bank branches and exchange offices in Khartoum were completely looted and their buildings, equipment, furniture, vehicles, and various other assets were stolen by the Rapid Support Forces. Across Sudan, a severe liquidity shortage has prompted some to call for the printing of new banknotes.