{"id":52304,"date":"2025-08-02T18:42:11","date_gmt":"2025-08-02T15:42:11","guid":{"rendered":"https:\/\/sudanevents.com\/?p=52304"},"modified":"2025-08-02T18:42:11","modified_gmt":"2025-08-02T15:42:11","slug":"sudan-central-bank-measures-steps-toward-currency-stabilization","status":"publish","type":"post","link":"https:\/\/sudanevents.com\/index.php\/2025\/08\/02\/sudan-central-bank-measures-steps-toward-currency-stabilization\/","title":{"rendered":"Sudan Central Bank Measures: Steps Toward Currency Stabilization"},"content":{"rendered":"

Report by: Nahed Oshi<\/strong><\/p>\n

The persistent depreciation of the Sudanese pound against foreign currencies continues to be a longstanding concern for successive governments since independence. On Thursday, Dr. Kamal Idris chaired a meeting to discuss the ongoing erosion of the national currency\u2019s exchange rate and to explore effective remedies to stabilize and strengthen the country’s economic performance, starting with exchange rate reform.<\/p>\n

Urgent Safeguards<\/p>\n

The meeting reached a consensus on the urgent need to address detrimental phenomena affecting macroeconomic stability and the value of the national currency\u2014chief among them smuggling, currency speculation, and unregulated imports. Participants also agreed on implementing immediate precautionary measures to protect national economic security.<\/p>\n

Former Ministry of Finance spokesperson and economic expert Ahmed Al-Sharif attributed the pound\u2019s decline to market speculation, policy misalignment between fiscal and monetary authorities, and a lack of foreign currency reserves. Speaking to Sudanese Echo, he cited the absence of export-driven revenues and value-added production as key structural challenges.<\/p>\n

Al-Sharif emphasized that solutions lie in boosting exports\u2014especially within value chains\u2014to secure adequate foreign exchange revenues. He also proposed transitioning from dollar-based transactions to bilateral trade in alternative currencies such as the Chinese yuan and Russian ruble, alongside commodity exchange agreements. Furthermore, he called for leveraging gold as a value store to finance productive development projects and drive economic recovery.<\/p>\n

According to Al-Sharif, \u201cThe dollar has become a commodity rather than a currency.\u201d He advocated for Sudan\u2019s accession to the BRICS bloc and urged the establishment of branches for foreign banks that deal with Sudanese exports. He also criticized the Central Bank of Sudan for lacking a clear vision on exchange rate management, noting that while halting corporate transfers might offer partial relief, the bank must implement robust monitoring mechanisms.<\/p>\n

Governmental Vacuum<\/p>\n

Economist Dr. Mohamed Al-Nair pointed to the political vacuum during the dissolution and reformation of the government as a key factor behind the pound\u2019s recent slump. He noted that the lengthy transition period often leads to sluggish decision-making, which in turn weakens currency confidence. Dr. Al-Nair also cited delays in currency replacement across stabilized regions such as Khartoum and Al-Jazirah, where old notes continue to circulate. He stressed that the government should have acted swiftly once these areas were deemed secure.<\/p>\n

Speculation in the Forex Market<\/p>\n

Speaking to Sudanese Echo, Dr. Al-Nair stressed that the state must not allow the private sector to engage in foreign exchange speculation, especially while there exists a government-backed portfolio for importing essential goods. He warned that lax controls over corporate transfers through banking applications had opened the door to currency manipulation, further weakening the pound.<\/p>\n

Despite these challenges, Dr. Al-Nair expressed optimism that peace and stability could soon return, paving the way for gradual economic recovery. He underscored the need to rationalize imports, questioning why unrestricted importation continues during wartime. Reducing demand for the dollar, minimizing gold smuggling, and reintegrating cash into the banking system, he argued, are critical to stabilizing the exchange rate. He also emphasized that harmonizing fiscal and monetary policies is essential for currency stability.<\/p>\n

Regional Conflict Impact<\/p>\n

Economist Dr. Abdullah Mohamed Osman highlighted the extraordinary difficulty even for more developed economies to sustain the costs of a regional war while managing daily governance for over two years. He noted the widespread damage to productive infrastructure, displacement of labor forces, and conversion of many regions into refugee zones\u2014all of which have severely undermined state revenues.<\/p>\n

Nevertheless, he commended the resilience of Sudan\u2019s economic management team over the past two years, saying their efforts have helped maintain some degree of economic vitality.<\/p>\n

Dr. Osman attributed the recent sharp decline of the Sudanese pound to heightened demand for hard currency, driven by essential imports such as food, fuel, and medicine. He argued that, given the state\u2019s limited forex reserves, the government must implement strict measures to regain control of its currency, such as curbing unnecessary imports\u2014a step recently taken by the Central Bank through its restrictions on large transfers via Bank of Khartoum.<\/p>\n

He concluded that with improved security, Sudan could leverage its comparative advantages by expanding exports of gold, livestock, oilseeds, and other goods\u2014provided that smuggling is rigorously curtailed. Dr. Osman also cautioned against exaggerated narratives of foreign currency depletion and banking collapse, calling them unprofessional and misleading.<\/p>\n","protected":false},"excerpt":{"rendered":"

Report by: Nahed Oshi The persistent depreciation of the Sudanese pound against foreign currencies continues to be a longstanding concern for successive governments since independence. On Thursday, Dr. Kamal Idris chaired a meeting to discuss the ongoing erosion of the national currency\u2019s exchange rate and to explore effective remedies to stabilize and strengthen the country’s …<\/p>\n","protected":false},"author":2,"featured_media":33150,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-52304","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-reports"],"_links":{"self":[{"href":"https:\/\/sudanevents.com\/index.php\/wp-json\/wp\/v2\/posts\/52304","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sudanevents.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sudanevents.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sudanevents.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/sudanevents.com\/index.php\/wp-json\/wp\/v2\/comments?post=52304"}],"version-history":[{"count":1,"href":"https:\/\/sudanevents.com\/index.php\/wp-json\/wp\/v2\/posts\/52304\/revisions"}],"predecessor-version":[{"id":52305,"href":"https:\/\/sudanevents.com\/index.php\/wp-json\/wp\/v2\/posts\/52304\/revisions\/52305"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sudanevents.com\/index.php\/wp-json\/wp\/v2\/media\/33150"}],"wp:attachment":[{"href":"https:\/\/sudanevents.com\/index.php\/wp-json\/wp\/v2\/media?parent=52304"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sudanevents.com\/index.php\/wp-json\/wp\/v2\/categories?post=52304"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sudanevents.com\/index.php\/wp-json\/wp\/v2\/tags?post=52304"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}