SUDAN NEWS ALERT: AP - Sudan announces managed currency float to revive economy

21/2/2021: AP - Sudan announces managed currency float to revive economy, by Samy Magdy

 AP report that Sudan announced a managed flotation of its currency to meet a major demand by international financial institutions to help transitional authorities overhaul the battered economy.

 The sharp devaluation could provoke a popular backlash as the price of goods and services rise in response to the fall of the pound’s value and possible hike in the price of fuel and other essential goods.

 The US Embassy in Khartoum said the move paves the way for debt relief and significantly increases the impact of international assistance. “This decision will also help Sudanese companies and attract international investment as both local and foreign companies will no longer encounter difficulties doing business in Sudan because of the dual exchange rate,” it said.

Volker Perthes, the UN envoy for Sudan, also hailed the floatation, saying, “It demonstrates that the transitional authorities can reach consensus, take difficult decisions and carry them through.”