‘Economy in dark and dire straits’ as Sudanese Pound pummelled

Traders on the parallel forex market are returning to the days before the ousting of President Omar Al Bashir. On Tuesday, the Dollar exchange rate on the parallel market ranged between SDG523 and 540, while the official rate ranges between SDG443 and 446. In an interview with Radio Dabanga, economic expert Prof Hasan Bashir described the current economic situation in the country as “dark and dire”, warning against “reaching a dead end”.

Bashir attributed the crisis to the confusing decisions to increase prices and fees because they are carried out outside the framework of the institution without studying the consequences. He also pointing to the absence of a government and the existence of multiple centres for decision-making.

Bashir explained that the public revenue crisis led to confusion as the government decided to increase the fees for medical and gas services before retracting them again.

He also said that the recent decisions will raise all commodity prices and further inflame the situation and noted that the authorities did not benefit from the lesson of increasing electricity tariffs, which caused the closure of the Sheryan El Shimal highway leading to the Egyptian border.

He said that the current increase in prices and fees led to an immediate escalation in inflation rates, a rise in the forex rates, and a rise in the cost of imports. He said that the solution lies in tackling the current political crisis and normalising relations with the international community and international financial institutions.

He described the current economic situation in the country as “dark and dire” and warned against “reaching a dead end” if no better decisions are made.