Khartoum / Port Sudan — The exchange rate of the US dollar against the Sudanese pound recorded a significant increase following a rise in the demand last week – while a sharp decrease in exports since war broke out in the country on April 15 has further led to a shortage of hard currencies.
The dollar rate in the parallel market rose to SDG700 while it reached an average of SDG618 at the banks in the country.
Leading economist Haisam Fathi told Radio Dabanga that the increase is mainly due to the growing number of Sudanese who plan to leave the country, especially after the government in Port Sudan announced the resumption of the issuance of passport last week.
Years before war erupted between the Sudanese army and the Rapid Support Forces (RSF) nearly five months ago, the country was already suffering from a large shortage of hard currency.
“Since the war, a sharp decrease of exports and a rise in imports via border trade with neighbouring countries, further led to a shortage of dollars,” Fathi said, and called on the Sudanese authorities to cooperate with neighbouring countries in order to stabilise the price of the Sudanese pound.
Fathi predicted the already soaring inflation to increase “unless the situation is remedied by the facilitation of exports and the stimulation of increased production outside the war zones”.
Drop in revenues
The economist warned that the Minister of Finance’s recent decision to reduce mining profits taxes from 30 per cent to 15 per cent will reduce the country’s revenues.
He also noted the positive aspect of the decision, as it “will lead to more investments and attract mining companies, thereby increasing profit and employment rates in Sudan. In light of the current situation, Sudan is in dire need of increased revenues, and the mining sector is the only entity operating outside war zones.”
Financial analyst Abdelazim El Amawi last month warned of a 70 per cent drop in Sudan’s economic revenues, owing to the dire economic consequences of the war.
He pointed to the war-ravaged industrial sector, which represents 21 per cent of the economy, saying that the 85 Sudanese factories in Khartoum have been completely debilitated as a result of the battles.
In mid-July, Sudanese economists estimated the economic losses caused by the war so far at $9 billion, or roughly $100 million per day. The value of property and goods plundered was estimated at another $40 billion.
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Author : [email protected] (Dabanga)
Publish date : 2023-09-11 07:36:34