Economist: New SDG 50 note ‘deliberate destruction of Sudan monetary system’

The conflicting decisions by the Central Bank of Sudan around the replacement of the SDG 50 note are “a deliberate destruction of the monetary system, confusion in the monetary policies and an indication of the absence of a systematic approach to economic policy,” according to a leading economist.

Dr Hasan Bashir who is professor economics at El Nilein University, described in an interview with Radio Dabanga the decision to remove the old 50-Pound note from circulation as “death and home destruction”.

He explained that the SDG 50 note constitutes 70 per cent of the mass of cash of which 80 per cent is outside the banks. He predicts that these funds will not be returned immediately to banks and that their owners would resort to other alternatives.

He attributed the rise of the exchange rate of the Dollar to the barrier of forty pounds to the increase in demand because of the recourse of the holders of SDG- 50 note stored them for foreign exchange.

Conspiracy

Prof Bashir did not rule out a conspiracy in the Bank of Sudan’s retreat from the immediate replacement decision, pointing to accusations of “centres of forces and fat cats within the regime keeping that note as a form of pressure to back down from the immediate decision”.

He said that these parties are storing large amounts of 50- pounds note

Prof Bashir criticised the authorities’ rush to print a new currency without taking the necessary measures, pointing out the flaw in its design and security, which made it vulnerable and considered it a waste of money and time

He wondered about the way the Bank of Sudan took the decision to print the note and who assigned it the task and whether the central bank would return its recent decision not to replace the note immediately or it would redesign and secure the new banknote.

He considered the crisis of replacing the 50 Pound as a manifestation of failure of things.

Prof Bashir accused the government of not addressing the causes of the real crisis and running behind its symptoms.