SUDAN INSIGHT ALERT: Arab Center Washington DC – A Coup Cannot Serve Two Masters

22/2/2022: Arab Center Washington DC – A Coup Cannot Serve Two Masters, by Kholood Khair

 

To soften Sudan’s political impasse, Kholood Khair, managing partner at Insight Strategy Partners think-tank, calls for recognition that the transition that started in August 2019 is over, and that a new transition toward a fresh civilian political dispensation is sought.

 

Amid Sudan’s economic crisis, Khair calls for recognition that pro-democracy forces can far outlast the military “who rely so heavily” on economic control, although civilian divisions offer the military pretexts for their coup.

 

Khair notes that the divisions revolve around mistrust between the Resistance Committees and Forces of Freedom Change (FFC) political parties, who differ on how to achieve civilian rule, although both are united in opposition a power-sharing arrangement with the military.

 

With political contestations and ideological differences “part and parcel of the democratic prerogative that underpins healthy democracies,” Khair suggests that key divisions between civilian groups about governance modalities can be negotiated and managed.

SUDAN NEWS ALERT: Sudan Tribune - Sudan has taken measures to curb inflationary effects of pound floating: minister

22/2/2021: Sudan Tribune - Sudan has taken measures to curb inflationary effects of pound floating: minister

 Sudan Tribune reports that the government took measures to address the inflationary effects of the Sudanese pound floating, said Finance Minister Jibril Ibrahim.

 However, the government took all measures to stabilise and improve the exchange rate of the national currency and eliminating the deficit in the national budget that leads to deficit financing, one of the biggest causes of high inflation rates," Ibrahim added, citing the unification of the exchange rate which would address the budget deficit, the balance of payments deficit and high rates of inflation.

 "The decision to unify the exchange rate will help improve the exchange rate, attract remittances from expatriates, limit smuggling of goods, contribute to Sudan’s debt relief, attract foreign investment flows, stimulate export and obtain its income through official channels," he added 

Jibril also said the family support programme is suspended due to a lack of sufficient information on families, as requested by donors.

SUDAN NEWS ALERT: Radio Dabanga - Sudan adjusts currency to parallel market rate

22/2/2021: Radio Dabanga - Sudan adjusts currency to parallel market rate

 Radio Dabanga reports that the devalued the Sudanese Pound with immediate effect. Finance Minister Jibril Ibrahim said that “unifying the currency” (setting the official exchange rate at the parallel market exchange rate) will bring Sudan stability, stimulate remittances from Sudanese living abroad, and attract foreign investments.

 The decision will also stimulate exports, help to receive revenues through official channels, and make sure Sudan can be included in the Debt Relief Under the Heavily Indebted Poor Countries (HIPC) Initiative, he added.

According to Ibrahim, the new financial measures will not result in a floating currency, and the flexible exchange rate is being managed. He claimed that foreign currency reserves are available to intervene, however he declined to disclose the size of these reserves.

 The Finance Minister stated that the decision was “not dictated by any external party”, but taken by the Sudanese government in consultation with experts.

SUDAN NEWS ALERT: Radio Dabanga - Sudan adjusts currency to parallel market rate

22/2/2021: Radio Dabanga - Sudan adjusts currency to parallel market rate

 Radio Dabanga reports on comments made by former finance minister Ibrahim al-Badawi on the devaluation of the Sudanese pound. Expressing support for the decision, al-Badawi said that “random borrowing from the CBoS” must be prevented as it can lead to a budget deficit, an explosive inflation, and an economic collapse. The government should also provide foreign currencies to the private sector so that companies can import strategic goods.

Al-Badawi questioned the feasibility of a managed exchange rate system, explaining that it would provide an ideal target for speculators who could kill it in its early stages, as happened during the era of the previous regime in 2018.

SUDAN NEWS ALERT: Reuters - Black market trade slows as Sudanese try banks after devaluation

22/2/2021: Reuters - Black market trade slows as Sudanese try banks after devaluation,

 Reuters reports that business on Sudan’s black market slowed and people sold dollars in banks for the first time in years, a day after authorities devalued the currency by more than 85% to try to secure debt relief and ease an economic crisis.

Aligning the official and black market rates is central to Sudan’s economic plans, which are hindered by the black market, used by most businesses and ordinary Sudanese, continuing to capture most of the hard currency trade.

Black market traders said they were waiting to see how banks would react and whether the government would intervene in the market to stop the Sudanese pound falling further or would crackdown on their activities.

The black market had been handling more than 90% of transactions, officials said, and is known for its convenience, free of red tape.

SUDAN INSIGHT ALERT: Voice of America - Sudan Devalues Currency in Hopes of Righting Economy

22/2/2021: Voice of America - Sudan Devalues Currency in Hopes of Righting Economy, by Naba Mohiedeen

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.  

SUDAN NEWS ALERT: Reuters - Sudan to investigate violence against protesters in Khartoum

22/2/2020: Reuters - Sudan to investigate violence against protesters in Khartoum

 Reuters reports that Sudanese Prime Minister Abdalla Hamdok ordered an investigation into a violent crackdown by security forces on protesters in Khartoum on February 20-21.

 He said Attorney General Taj-Elsir Ali would head the committee and a final report would be issued within seven days.