An Economic Expert Calls for Boldness in Dealing with Exchange Rate

Sudan Events – Nahid Oshi

Economist Dr. Awadallah Musa warned of the continued deterioration of the exchange rate of the Sudanese pound against foreign currencies.

He described what is happening in the market as complete chaos, and said that those who follow the movement of foreign currencies are astonished by the bitter reality of the Sudanese economy, despite the fact that the war is considered an opportunity to re-plan the economy by creating controls on imported goods and sizing them and limiting everything that is not necessary while focusing on only the necessities, which creates a kind of clear controls and procedures that affect the balance of imported goods and thus the demand for the dollar, he added in a statement to (Sudan Events): “It is clear that there is complete chaos in the market and chaos in the purchase of foreign exchange, and it has directly affected prices,” criticizing the weakness of procedures, follow-up, and lack of oversight as well as the growth of speculation and the forms and corruption of export revenues, which made the dollar continue to rise. He said that the policies and procedures followed by the Central Bank of Sudan have not yet borne fruit and did not affect the decline in dollar prices, but rather they affected for a limited period that did not exceed (48) hours, then the dollar rose again.  Other measures, which means that the impact of the measures taken to rein in the dollar is weak, and those measures and policies need to be reviewed by the Bank of Sudan and the banks, and all packages of measures concerned with controls need to be reviewed, indicating that some of the measures are outdated, and he said, “We need unconventional solutions and boldness in dealing with the exchange rate.”  He added, “We need the prestige of a state and the prestige of a law,” and added, “We are now suffering from impoverishment due to fighting, economic war, and the growing exchange rate in the parallel market.”