Financial Advisor: Sudan Goes Through War Economy

Sudan Events – Nahed Oshi

A Sudanese Economic and Financial Advisor, Dr. Alalla Abdelrazig has described the exceptional conditions that the Sudanese economy is currently going through as a “war economy,”.
Abdelrazig has pointed out in statement to Sudan Events to the continued decline in government resources coupled with an increase in government spending to meet the war requirements.
Criticizing the Central Bank of Sudan’s introduction of a new thousand pound note, Dr Alella told Sudan Events that printing a new denomination reflects the state of political and security instability in Sudan, currently living in a state of non-statehood, that contributes to the disruption of the revenue institutions within the public and private sectors.
He draws attention to the decline in the growth of the real sectors of production, i.e. the agricultural and industrial sectors.
Dr Alella said the effect of introducing the new print of a denomination is going to increase the size of the monetary supply and augment the money supply, which leads to higher inflation rates and a rise in the general level of prices, coupled with a decline in the exchange rate of the Sudanese pound against foreign currencies. This situation, he hinted, constitutes a state of instability in the economic environment.