Counterfeiting the National Currency…Destroys the Economy

Report – Rehab Abdullah

*It is clear that the phenomenon of forgery and counterfeiting of currency in Sudan, which has increased in frequency under the current circumstances of war, has become a security and criminal issue that worries everyone and greatly threatens the national economy.
The most dangerous thing is what was revealed by the director of the office of the Sudanese Mineral Resources Company in the northern state, Abdul Rahman Mahjoub Al-Nadhif, about the appearance of denominations of counterfeit cash amounts in the mining markets spread across the state’s (11) localities. The danger comes from the fact that the mining sector is considered one of the most sectors which absorbs large cash flows, that requires addressing counterfeit currency problems and preserving mining resources*.
Threats of currency counterfeiting
The financial and economic expert, Dr. Alallah Abdul Razzaq stated that counterfeit currency is considered an illegal activity according to Sudanese criminal law, and constitutes a major threat to the national economy. It is clear that identifying counterfeit currency is extremely important in terms of its impacts on the economic and other aspects in Sudan’s current conditions and the state’s loss of its unity and others.
The danger of trading counterfeit currencies
The economic expert, Dr. Haitham Fathi, confirmed the seriousness of the phenomenon of counterfeiting currency to the national economy, and he said in his speech to (Sudan Events) that one of the most severe means of economic destruction and wars of survival is counterfeiting money and flooding the country with it, adding that counterfeiting currency wars destroy the value of everything. It is the war of existence. While the economic expert, Dr. Alallah Abdul Razzaq , in his speech to (Sudan Events), confirmed that the massive circulation of counterfeit currencies in Sudan affects the government’s ability to spend additional resources to discover and prevent these counterfeit currencies, in addition to the government losing revenues to avoid taxes and other financial obligations.
Detecting counterfeit currency
Dr. Haitham Fathi explained that counterfeiting currency is often discovered by the public, the banking sector, and the central bank, adding that what encourages currency counterfeiting is the low liquidity and scarcity of money, which works to entice gangs to meet the market’s thirsty demand for local currency with counterfeit currencies.
Fathi criticized the ease with which individuals naturally own printing machines without restrictions, and considered it a major reason for the spread of counterfeiting, with reliance on high counterfeiting techniques that are difficult to pursue by traditional means.
In addition to the desire to achieve financial gains and quick wealth by exploiting the economic crisis in an easy way, despite violating the law.
Fathi stressed the need to strengthen supervision over markets to confront this phenomenon, which is considered a crime against the national economy, and to increase the penalty, while reducing reliance on manual trading, and expanding the electronic payments system.
Forgery in mining areas
While counterfeit currencies spread in mining areas, Abdul Razek saw that the spread of this phenomenon in sensitive production areas such as mining, has a growing impact on the performance of economic indicators, as there is no doubt that this phenomenon could lead to a decline in the value of the national currency, in addition to the loss of… confidence in the financial system and all its institutions, thus leading to a rise in inflation rates by increasing the supply of the volume of the money supply and then this is reflected in rising price levels.
In addition, the use of counterfeit currencies in large quantities has serious consequences, including damage to the reputation of individuals and institutions, in that identification with the phenomenon of counterfeit currency that is widespread these days is considered a serious problem, requiring attention and vigilance, noting that the impact of these counterfeit currencies will definitely affect purchasing power, in addition to the impact through a decrease in confidence in the transactions of the local economy, through its impact on the loss of revenues of operating companies.
While Dr. Haitham Fathi believes that the liquidity crisis is one of the encouraging reasons. He believes that the emergence of counterfeit currencies at the present time that Sudan is experiencing is “truly, there is no clear liquidity crisis,” but he saw that the matter is nothing more than a decline in buying and selling rates, That is, the result of the decline in purchasing power of large sectors, a reflection of the economic crisis.
How to fight counterfeiting
To prevent counterfeit currencies from spreading, Dr. A Alallah Abdul Razzaq , pointed out that the authorities should invest in security measures such as intensifying detection devices, adopting advanced training programs, and public awareness campaigns, as well as the need to adopt non-cash payment systems, which reduces the circulation of counterfeit currencies, adding that the monetary authorities “The Central Bank of Sudan” should adopt several technologies that can be used to prevent the spread of counterfeit currencies, such as RFID technology, Blockchain technology, and other modern technologies.
Abdul Razek stressed the need to strictly implement the provisions of the law, and believed that enforcing the legal system is extremely important.