The Central Bank of Sudan decides to float the pound to address the effects of the economic crisis

by **claud39** Sun Feb 21, 2021 11:07 am

[size=36]The Central Bank of Sudan decides to float the pound to address the effects of the economic crisis[/size]

21/02/2021

The Central Bank of Sudan decides to float the pound to address the effects of the economic crisis 72122021_239886-996682815

Baghdad - Mawazine News

The Central Bank of Sudan announced, on Sunday, the unification of the exchange rate of its local currency, the pound against the US dollar and foreign exchange, starting today, in an attempt to eliminate economic and monetary imbalances.

The Sudanese central bank said, in an official statement today, that "the decision to partially float the currency aims to unify and stabilize the exchange rate, transfer resources from the parallel market to the official market, and attract remittances from Sudanese working abroad through official channels."

"The decision will contribute to the normalization of relations with regional and international financing institutions, in order to ensure attracting flows of grants and loans from these bodies and stimulating producers, exporters and the private sector by giving them an acceptable exchange rate," the bank stressed.

"The unification of the exchange rate will limit smuggling of goods and currencies, and fill the gaps to prevent speculators from benefiting from a gap between the official price and the price in the parallel market," he added.

The decision is intended to mean that the Central Bank will have full powers to intervene in exchange rates in the event that it exceeds a ceiling set by it.

Sudan suffers from renewed crises in bread, flour, fuel and cooking gas, as well as a continuous deterioration in its national currency, and a steady rise in inflation rates.

And last week, Sudanese data showed that the country's annual inflation rate rose to 304.33 percent in January, from 269.33 percent in the previous December.

Ended 29/4

https://www.mawazin.net/Details.aspx?jimare=142593

by **claud39** Sun Feb 21, 2021 6:54 pm

The Sudanese Central Bank unifies the pound exchange rate

02/21/2021

Economy News - Baghdad

The Central Bank of Sudan announced that it had issued instructions to banks to unify the official and parallel exchange rate, starting from Sunday, in a move expected to lead to a significant devaluation of the pound.

Recently, the price of the dollar reached between 350 and 400 Sudanese pounds on the black market, compared to an official price of 55 pounds.

According to Reuters, the Central Bank's letter of instructions to banks said that it would set a daily base price based on the market price between banks and the role of exchange, and the instructions oblige banks to declare an exchange rate within a range of 5% more or less than the central bank rate based on market supply and demand, and not more The profit margin between the buy and sell prices is about 0.5%.

The central bank did not clarify the rate at which the exchange rate was decided to be unified, but analysts say that unification practically means moving to the parallel market price, given that almost all transactions are calculated at that price, according to Reuters.

The bank said in a statement: The Sudanese economy has been suffering from structural imbalances, exemplified by the internal imbalance, including, for example, the high state budget deficit, and the external imbalance represented by the high balance of payments deficit, and the features and symptoms of these imbalances have been evident in high inflation rates, multiple exchange rates and deterioration Continuous exchange rate of the local currency against foreign currencies.

The Sudanese Central Bank continued that these imbalances deepened after the secession of South Sudan and the departure of most of the oil reserves to the State of South Sudan, and the continued security, political and economic instability with the continuation of the American economic embargo and the presence of Sudan in the American list of states sponsoring terrorism, and the resulting difficulties and complications in correspondence relations The foreign exchange of Sudanese banks and the decline in foreign exchange flows, and the country could not benefit from international initiatives for debt relief, such as the Heavily Indebted Poor Countries Initiative, known as HIPC.

The Central Bank of Sudan said: Now that we are looking towards a new phase as a result of political developments after the glorious December revolution and the signing of the Juba Peace Agreement, and within the framework of openness to the outside world after removing Sudan from the list of countries sponsoring terrorism, it is imperative to reconsider all the state’s economic policies to conform to these requirements. This stage, in order to help achieve economic stability, and to address these imbalances required coordination and full cooperation between the relevant authorities.

Reform of the exchange rate system

The Central Bank of Sudan revealed that the transitional government’s opinion has settled on adopting a package of policies and measures aimed at reforming and unifying the exchange rate system by adopting a flexible and administered exchange rate system.

In this context, publications and regulations of the Central Bank of Sudan were issued directed to banks and exchange companies to implement the reform vision of the state as of Sunday, February 21, by unifying the exchange rate in a way that contributes to the following:

1- Standardization and stability of the exchange rate.

2- Transferring resources from the parallel market to the formal market.

3- Attracting remittances from Sudanese working abroad through official channels.

4- Attracting foreign investment inflows.

5- The normalization of relations with regional and international financing institutions and friendly countries, in order to ensure the attraction of grant and loan flows from these bodies.

6- Motivating producers, exporters and the private sector by giving them the split exchange rate.

7- Limiting smuggling of goods and currencies.

8- Filling the gaps to prevent speculators from benefiting from a gap between the official price and the price in the parallel market.

9- Helping to work on exempting Sudan's external debts by taking advantage of the Heavily Indebted Poor Countries initiative.

The Central Bank of Sudan indicated that ensuring the success of the results of these policies and procedures requires the solidarity and concerted efforts of all relevant authorities, including government agencies and the private sector, and the implementation of the economic reform package immediately without delay and with full coordination.

https://economy-news.net/content.php?id=24154

by **claud39** Sun Feb 21, 2021 6:57 pm

History of Iraqi Dinar

The Central Bank of Sudan decides to float the pound to address the effects of the economic crisis 152985273_10219837671439351_6086458122227160783_n.jpg?_nc_cat=103&ccb=3&_nc_sid=825194&_nc_ohc=auaYsZ_QkQUAX-MnJ7D&_nc_ht=scontent-yyz1-1

The Central Bank of Sudan decides to float the pound to address the effects of the economic crisis 152985273_10219837671439351_6086458122227160783_n.jpg?_nc_cat=103&ccb=3&_nc_sid=825194&_nc_ohc=auaYsZ_QkQUAX-MnJ7D&_nc_ht=scontent-yyz1-1

1932
Currency unit consisting of 1,000 fils or 20 dirhams. When officially introduced at the end of the British mandate (1932), the Iraqi dinar was equal to, and was linked to, the British pound sterling, which at that time was equal to US $4.86.
1932–1949

1949–1971
Iraqi dinar (ID) equaled US $4.86 between 1932 and 1949 and after devaluation in 1949, equaled US $2.80 between 1949 and 1971.

1959–1967
Iraq officially uncoupled the Iraqi Dinar from the pound sterling as a gesture of independence in 1959, but the Iraqi dinar remained at parity with the pound until the British unit of currency was again devalued in 1967.

1971
One Iraqi dinar remained equal to US $2.80 until December 1971, when major realignments of world currencies began.

1973
Upon the devaluation of the United States dollar in 1973, the Iraqi Dinar appreciated to US $3.39. 1980

It remained at this level until the outbreak of the Iran-Iraq War in 1980.

1982
In 1982 Iraq devalued the dinar by 5 percent, to a value equal to US $3.22, and sustained this official exchange rate without additional devaluation despite mounting debt.

1988

In early 1988, the official dinar-dollar exchange rate was still Iraqi dinar (ID)1 to US $3.22; however, with estimates of the nation’s inflation rate ranging from 25 percent to 50 percent per year in 1985 and 1986, the dinar’s real transaction value, or black market exchange rate, was far lower-only about half the 1986 official rate.

1986–2003

******1986–2003 between .33 cents to 1.32 to a dollar.******
2001
Oil-production: 2.452 million bbl/day (2001 est.); note — production was disrupted as a result of the March-April 2003 war (2001 est.)
2002

GDP: purchasing power parity — $58 billion (2002 est.)
2002
Exports–partners:US 40.9%, Canada 8.2%, France 8.2%, Jordan 7.5%, Netherlands 6.4%, Italy 5.4%, Morocco 4.7%, Spain 4.4% (2002)
2003

In October 2003, the official Dinar-dollar exchange rate was ID1 to US$0.00027.
2004–2005

August 2004 till 2005, the official dinar-dollar exchange rate is ID1 to US$0.00068. Population: 25,374,691 (July 2004 est.)
2006

As of Jan 1st 2006, the official Iraqi dinar-US dollar exchange rate is ID1 to US$ $0.00067

https://en.wikipedia.org/wiki/Iraqi_dinar

https://www.dinardaily.net/t98208-history-of-iraqi-dinar