Bank of Sudan says South has six months to replace currency Article Comments (3) Email PrintSave --------------------------------------------------------------------------------
June 13, 2011 (KHARTOUM) – The Bank of Sudan announced on Monday that the soon to secede South will be given six months to replace its currency from the date it becomes officially a new state on July 9th. A member of the Kenana Arab tribe, with Sudanese pounds attached to her head gear, takes part in a tribal dance performance after ballot boxes were sealed on the last day of voting, at Galayat locality in South Kordofan State May 4, 2011 (Reuters) In an address before the country’s national assembly the central bank governor Mohamed Khair Al-Zubair said that the highest financial authority in the country crafted policies and procedures for the replacement of the national currency in South Sudan. All this is done in agreement with the Government of Southern Sudan (GoSS), Al-Zubair said. It is estimated that 10% of the monetary supply is in the South. Following a referendum that was held last January, the people of Sudan voted almost unanimously in favor of separating from the North, a right given to them by the 2005 Comprehensive Peace Agreement (CPA). South Sudan has issued contradictory statements on whether they want to retain the pound after secession or create their own. Many economists said that the new state will not be able to support a new currency and would be better off maintaining its monetary unity with the North for at least a year. The former governor of Sudan’s Central Bank Sabir Mohamed Al-Hassan in an interview earlier this year appeared critical saying that South Sudan refused to heed to advices by experts and consultants to form a monetary unity with the North. Another option that was discussed in the South is to use the US dollar. Last February diplomats told Reuters that the north had threatened making the potentially disruptive move of introducing its own currency during negotiations, but added it was just a tactic to win concessions from the south ahead of secession. Observers say the oil-rich South is eager to break all forms of dependency on the North. Sudan produces some 500,000 barrels per day of oil, but only 100,000-110,000 bpd are from wells in the north. The economy is dependent on oil for some 45 percent of its budget and most of its foreign currency revenues. The landlocked South has explored the idea of building a pipeline that would pump oil produced in South Sudan through a Kenyan port instead of using Port Sudan in the North. However, the idea is costly and would take time to implement. (ST) -- You received this message because you are subscribed to the Google Groups "JFD info" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/jfdinfo?hl=en.
