May 14, 2021

Sudan Inside

To Know Sudan

Currency change in Sudan: The views of the economic experts on the economic importance

3 min read

The Economic expert Ahmed Ben Omer introducing his economic opinion to Sudan inside

It has become almost certain that Sudan is about to take an important economic step, in order to save the country from the abyss that the country’s economy is moving towards. This may be an important, complex and costly step.
 This step is to change the country’s currency to cut off the path to corruption, speculation and counterfeiting of the currency, will the government officially switch its currency despite the major crises it is experiencing?


 The reasons are available

Ahmed Ben Omer, the Sudanese economic researcher, said that it has become certain that the currency will be changed in the country, given that the factors that call for any country to change its currency are now available in Sudan. He added to “Sudan inside”, that among the main factors calling for change is the counterfeiting of currencies in large quantities, and this is what actually happened in Sudan, with the recognition of the official authorities themselves, in addition to the weakness of insurance marks and the quality of the currency currently in circulation, which made it subject to fraud as is happening now.


 He continued:

The official authorities constantly declare that fraud destroys the economy and helps speculation in foreign exchange, and thus the deterioration in the national currency and the high rate of inflation, all of which are risks facing the country in general and the economy in particular.


 The economist added that there are other risks, represented in the fact that 92% of the official monetary mass is outside the banking system “among the public” compared to only 8% within the framework of the banking system, and this alone is sufficient for the state to advance the currency exchange process so that it can restore the block. Monetary policy into the banking system so that the economy can benefit from it in a large proportion because monetary policy-making that targets economic reform requires information on the monetary mass.


 And Ben Omer continued:

“We, as interested and researchers in an economy, advised us a lot that the currency be exchanged at the beginning of the transitional period, and this was supposed to be the first decision not only because the currency is counterfeited and a large percentage of it is outside the banks, but in order for the door to be completely closed. In front of all those who seek to exchange the national currency for dollars or gold for the purpose of smuggling abroad by those who violated public money or corrupted during the previous periods. He pointed out that “this decision could have completely closed the door to speculation operations on the dollar and gold and pressure on those things, and if the change process had taken place at the beginning, the interest would certainly be much higher than it is now,” indicating that there are many who encroached on public money and corrupted in Under the previous regime, they exchanged that money, but the risks remain from the issue of fraud and its increased rates. Expected obstacles
 The economic expert pointed out that the government is supposed to respond to the demands of the political incubator, namely the forces of freedom and change, whose economic committee has been calling for the need to exchange the currency. Currency change order.


 On the obstacles that can be faced in the event of a switch, Ben Omar said:

“Certainly there are obstacles that will face the exchange process, including the costs of printing a new currency, which is not an easy matter, which is required in foreign exchange, whether it is printed at home or abroad.” Ben Omar believes that this matter is difficult in light of the current circumstances for the government of the transitional period, but it is necessary and the transitional government must manage its situation and carry out this step for many antiquities treatments, especially since the aforementioned amount of $ 700 million to complete the replacement process is exaggerated and the cost is not As large as the government claimed. 

The economist explained that the replacement or exchange of currency must be done in a smooth manner so that the simple citizen who has few sums that can be exchanged is not harmed, but the target of the exchange is not these, adding: Rather, it is a matter of those who hoard billions of pounds in homes or warehouses. Either they return those sums to the banking system or, after a period of time, these funds become worthless with the exchange of currency.

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