Economic Expert Explains the Causes Behind the Sudanese Pound’s Latest Decline

Sudan Events – Rehab Abdallah

Economic expert Dr. Mohamed Al-Naiir attributed the recent depreciation of the Sudanese pound against foreign currencies to several key factors.

Speaking to Al-Ahdath, Al-Naiir said that the primary cause was the significant delay in forming the transitional government—dubbed the “Government of Hope.” He noted that an extended period had passed since the previous government was dissolved, with no new administration yet established, resulting in a lack of urgency and poor implementation of economic, fiscal, and monetary policies.

He also pointed to the issue of currency replacement. While calling it a positive step in principle, he stressed that delays in implementing the currency swap in recovered and now-secure areas—such as Gezira State, Khartoum State, and others—prevented a potentially stabilizing shift in the market and left room for continued speculation in the dollar. He described this delay as a serious mistake requiring correction by the Central Bank.

Al-Naiir further acknowledged that although some banks had resumed operations in Khartoum, their numbers remained limited. He highlighted that Khartoum previously accounted for more than 500 out of Sudan’s 800 bank branches.

He continued, “A third critical issue is that currency stability depends on policies that offer incentives—such as encouraging exporters, increasing export volumes, and regulating imports. These are policies that stabilize the national currency and help build reserves of foreign currency and gold. Such policies must be activated.”

Al-Naiir also emphasized the importance of security measures to accompany economic policies. He asserted that the prolonged delay in forming the government has created a policy vacuum, leading to major challenges in implementing incentive mechanisms and maintaining security.

He called for immediate and firm security measures and expressed hope that the “Government of Hope” would be announced as soon as possible. He stressed the need for each minister to quickly develop and implement their plan under the supervision of the prime minister.