Sudan has been going through a tough financial situation, as it resorted to devaluing its currency to settle its debts. Economy experts are opposed to this, but the government insists that is the only way to stay afloat.
Sudan devalues the currency to settle debts
The Sudanese government has approved the immediate devaluation of its currency to combat the negative situations its economy has gotten into. This was announced on Sunday by the central government to make a reformation that will have a positive impact on the economy.
This is part of the efforts demanded by the IMF and foreign aids before they can render Financial aid to the economy. The amount set was 376 pounds to the US which was initially 60 pounds. The US dollar has sold for between 360 and 420 Sudanese pounds in the black market.
The Sudanese central bank has set a personal rate to combat the economic issues battling the economy. For example, financial institutions and Bureau de change are mandated to trade within 6 percent or below the set rate. Also set was a profit margin of about 0.6 percent of buying and selling prices.
Foreign capital expected before months end
The minister of finance Jibril has said that some expected amounts of foreign capital are expected into the coffers of the country soon. '' The decision will save the economy and not encourage inflation in the future "Governor" Al-father Zainelabidine.
Sudan has been battling with economic challenges for some years and has devalued the currency more than five times in two years. Though critics have warned that consistent devaluation of the economy is dangerous, the government has insisted that it is doing its best to save the economy and lift the economy out of recession.
The IMF has insisted that they will only bail out the country or devalue its currency. Financial experts have said unless Sudan starts massive economic production, it risks severe inflation in two years.
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