The Sudanese pound is recovering .. What are the reasons for this?

Ahmed Fadl-Khartoum

"The blessing will not be the reason for the recovery of the Sudanese pound against hard currencies after the success of the revolution to isolate President Omar al-Bashir, the economy is a game of numbers and calculations only,

The Sudanese pound has been unusually bullish against the dollar for a few days. Before the sit-in on April 6, the dollar was at 72.5 pounds, and now the national currency is only holding back the official price of the Central Bank of Sudan at 45 pounds.

The Central Bank of Sudan raised the local currency exchange rate to 45 pounds against the dollar from 47.5 pounds previously.

The official Sudan News Agency (SUNA) said the measure was in line with the sharp drop in the dollar exchange rate in the parallel market.

The purchase price of the dollar in the parallel market fell to 48 pounds by buying in cash, and 56 pounds through banking procedures.

The opinion of economists that the rise of the pound against foreign currencies is temporary and unrealistic, stressing the need to devote economic and monetary policies take advantage of the current situation to stop the bullying dollar.

Supply and demand
According to economic expert Mohammed Al-Jack that the determination of the exchange rate of the dollar depends on the mechanism of the market of demand and supply, as it emerged recently that the demand for the dollar fell.

In an interview with Al-Jazeera Net, Al-Jake identified several possible reasons for the pound's rise: the government's need for a dollar from the parallel market, as well as uncertainty due to current circumstances that make many reluctant to buy the dollar as a valuable store.

Jack predicts the continued recovery of the national currency by re-considering the economic policies that have been applied wrongly and without deviations, and created monopoly centers based on speculation in currencies.

"Unless these policies change and the wrong implementation is done, the pound's appreciation will not continue in the medium and long term," Jack said.

Temporary recovery
"The dollar is temporary," said Taha Hussein, an adviser to the stock market. "For the first time, it is happening before Ramadan, when demand for the dollar is rising.

He attributed the decline to the high demand for government purchases against the backdrop of the cessation of all activities throughout the fall of the system, while limited in small speculation, which led to a decrease in supply and demand, and considered one of the cruises of the abolition of corruption.

Hussein pointed out that the basic justification for the current situation is due to the fear of operations on current accounts, in addition to activation of the emergency law.

He warns that the rise of the pound is not due to economic reasons because the dollar is high in global markets, while gold has fallen since December last year.

Hussein expected the pound to decline if a demand for the dollar appeared over the next period.

He stresses the need for the transitional government, which is expected to be formed, to remove Sudan from the list of state sponsors of terrorism and to free the movement of bank transfers.

Taha Hussein stressed the importance of reducing external debt, which is now according to the World Bank site of 58 billion dollars.

Continued inflation
Remarkably, the recovery of the pound has not been reflected in the inflation situation in Sudan's markets, and traders and consumers are hardly aware of any drop in prices for goods and services.

Inflation in the country hit 45.5 percent in March.

There is confusion and confusion in the auto and real estate market, the most lucrative sector, amid fears of heavy losses to traders and brokers. On the level of medicines and building materials, the anticipation remains the master of the situation.

The pharmaceutical industry says there is now a lot of embarrassment from pharmaceutical companies waiting for the political situation to be linked to the economic situation.

"It is certain that the rise of the pound is not one of the blessings of the revolution, the economy is a figure, and there are no production or grants and loans to make the economy recover, so there has been no drop in drug prices."

Abdel Moneim, owner of a building materials shop, seems indifferent to the pound's rise. He considered what was being exploited by currency traders to buy the dollar cheaply and then make huge profits by selling later at a higher price.

What matters to the Sudanese is that they buy food, medicine and all goods and services at prices that are less suited to their incomes.

The Sudanese citizen's income is $ 2,631 a year, according to a UN report last year.

Only families dependent on remittances from abroad seem to be most affected by the depreciation of the pound.