Expert expects dollar to rise further

Sudan Events – Nahed Oshi

An economic expert expected the dollar exchange rate against the Sudanese pound to continue rising in the absence of a government plan to develop an emergency relief strategy to confront the economic and financial impact of the current war.
The economic expert, Dr. Haitham Muhammad Fathi attributed the decline in the value of the Sudanese pound against foreign currencies to non-economic factors, but rather related to the war in Khartoum and the states of Darfur, as well as the political situation, its ups and downs, and the lack of stability in the country.
He said in a statement to (Sudan Events) that the value of the currency is negatively affected in situations of war, disasters, security chaos, political instability, and the like, and this is what the people are experiencing in Sudan, especially with the Sudanese economy suffering from structural imbalance in economic indicators, such as inflation, balance of payments, and foreign reserves, the budget deficit in the general budget, in addition to the printing of new banknotes through deficit financing, the continuation of the war, the expansion of forced migration from homes, and the increasing number of displaced persons and refugees.
Fathi added that, so far, the government has not addressed these indicators in the correct ways or even created an emergency first aid plan to confront the effects of the current war. Therefore, the exchange rate is at risk of rising with further bleeding in value, and any improvement in its exchange rate will be limited (by traders’ speculation).
He noted the decline in foreign trade and the high inflation rate due to the increase in government spending in relation to public revenues that were lost due to the cessation of many services due to the war. Exports also declined by a very large percentage, in addition to the increase in demand for imports.
The departure of foreign and national capital invested outside Sudan increased, much of it stopped, and a large part of these investments were looted and destroyed, especially investments in areas currently witnessing conflict.
Dr. Haitham drew a road map to address the collapse of the Sudanese pound and said that a plan must be developed that works to remove the obstacles facing some local industries in the country in stable areas, work to facilitate export operations, and take effective steps and monetary policies