Sudan brutally devalues its currency in an attempt to stabilize its economy
The Sudanese pound was brutally devalued on Sunday February 21, 2021. ASSOCIATED PRESS - Abd Raouf
Text by: Olivier Rogez Follow
2 min
It is a brutal devaluation, but expected, of the pound to which the Sudanese Central Bank engaged this Sunday, February 21, announcing a unification of exchange rates.
Sudan is going through a serious crisis.
Shortages and rising prices make life difficult for the populations.
The measure, in the form of an electric shock would stabilize the economy.
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Concretely, the Sudanese Central Bank aligns itself with the black market rate.
The Sudanese pound will drop from 55 pounds to the dollar at 375. The measure is accompanied by increased exchange controls and was expected by donors and the IMF who demanded a "
monetary truth
".
The measure was loudly demanded by the
International Monetary Fund
, but also all the donors.
For them, the Sudanese economy could no longer live in a monetary lie, with an official price of the pound 6 times lower than that of the black market.
By aligning the two exchange rates, the Central Bank is paving the way for a whole series of financial support programs.
Thus the United States and Great Britain will be able to release more than 1.5 billion dollars of assistance, including a program of 450 million intended for the poorest families.
Restructure the country's debt
Better still, the IMF, which has already welcomed the government's economic reform program, will now be able to restructure the country's enormous debt.
It exceeds $ 60 billion.
Still, this devaluation risks igniting the streets a little more.
With glaring shortages of bread, medicines, fuel, inflation approaching 300% year-on-year, the Sudanese are facing terrible difficulties.
Last year the end of a number of costly subsidies on bread and fuel sparked protests.
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Sudan
Economy
Currencies
Africa