Central Bank of Sudan lowers cash withdrawal limit on eve of Eid El Adha

The Central Bank of Sudan (CBoS) has issued an oral order to banks reducing the amount of cash withdrawals to customers from SDG 2,000 (*$70) to SDG 1,000 ($35).

Economic analyst Kamal Karrar told Radio Dabanga that the move would increase the suffering of employees and workers who have been forced to deposit their salaries in the banks.

He explained that the reduction coincides with increasing need for money with the advent of Eid El Adha.

Karrar attributed the current decision of the CBoS to the exit of money from the commercial banks and lack of confidence in the banking system. He considered the decision as a contravention of citizens’ rights and illegal seizure of their property, adding that this will increase public anger and severely hit the Sudanese Pound (SDG).

He accused the government of not taking any economic measures to reduce inflation or solve the hardship of living.

Sudanese economists and economic analysts lament that the liquidity crisis is ongoing in the country; employees in the government sector are the most affected by the cash crisis.

Speaking to Radio Dabanga last week, Karrar attributed the main cause of the crisis to the bank administrations’ use of customer deposits on the pretext of investing in an unknown area. He explained that the crisis led to a decline in confidence in the banking system and the expectation of the continued reluctance of citizens to deal with banks for long periods.

Karrar ruled out the impact of pumping South Sudan oil on the foreign exchange rate in the country.

* Based on the indicative US Dollar rate quoted by the Central Bank of Sudan (CboS)