SUDAN INSIGHT ALERT: Voice of America - Sudan Devalues Currency in Hopes of Righting Economy
Voice of America report that Sudan's central bank sharply devalued its currency, the Sudanese pound, in an attempt to get debt relief, crack down on the black market, and attract money back to the country.
Khartoum-based economist Abubakr Omar the step is necessary to reform the Sudanese economy, as unifying the exchange price will stabilise the exchange rate and encourage investment in Sudan and open doors for Sudan’s involvement in the international economy by utilising its natural resources.
Economists like Waleed Alnoor think the step to devalue the pound is risky and will have a severely negative impact on people and the economy if the central bank does not have enough cash savings of the hard currency, the greatest impact will be on the middle-class and low income people.
But analyst Abubakr Mohamed says the impact will be small as the official economy is not controlled by the market.