Sudan to launch new currency on Sunday
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July 21, 2011 (KHARTOUM) – The Sudanese government today announced
that the new currency will be officially circulated next Sunday amid
tensions with the new state of South Sudan on how to get rid of the
old currency.
JPEG - 17.8 kb
Sudan’s Central Bank Deputy Governor Badr Al-Din Mahmoud holds up the
new Sudanese currency during a news conference at the Central Bank
headquarters in Khartoum July 16, 2011 (Reuters)
Sudan’s finance and national economy minister Ali Mahmood Hassanein
told the parliament on Thursday that July’s salaries will be paid in
the new currency.
He also cautioned on the possibility that part of the old Sudanese
pound would be smuggled into Sudan for the purpose of exchanging it
with the new one and stressed that measures will be taken to prevent
that.
Hassanein was apparently making reference to what Sudan perceives as
attempts by the authorities in South Sudan to undermine their economy.
South Sudan has been resisting demands by Khartoum to hand over the
old version of the pound circulated in the South which was estimated
to be equivalent to $700 million.
The Central Bank of Sudan (CBoS) said last week that South Sudan wants
to replace old pound only through exchanging it with foreign currency
or commercial trade between the two countries.
But Hassanein today dismissed the demand saying that South Sudan can
keep the old currency "in the museums".
"They can keep it the same way they kept the [Sudanese] flag [at South
Sudan independence ceremony]" the minister said.
South Sudan has already issued its own currency this week.
The Sudanese official underscored that the South’s secession "created
a new reality" adding the commercial dealings with the new state will
be conducted only in foreign currency.
He noted a recent order by the South for 100,000 tons of corn from Sudan.
"If the South wants it, then [this purchase] will only be completed in
[current] world price," Hassanein said.
He further said that South Sudan is the most impacted by the country’s
breakup where prices there has skyrocketed adding that Sudan’s economy
on the other hand is strong and stable.
Both countries appeared to be in growing disarray over economic issues
including currency and fees on transporting oil from the landlocked
South through pipelines in Sudan. They have also yet to agree on
splitting the national debt which stands at $38 billion.
The secession of the south, where three-quarters of Sudan’s 470,000
barrels per day of oil is produced, has aggravated the mounting
economic difficulties facing Khartoum, by cutting an estimated 36.5
percent off its total revenues, according to the finance ministry.
Sudan’s revised budget for 2011, which was ratified by parliament on
Thursday, envisages an income of 23.3 billion Sudanese pounds ($6.5
billion), against government expenditure of 26.7 billion Sudanese
pounds ($7.5 billion) and 18 percent inflation.
(ST)
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