Home | News    Monday 18 July 2011

Sudan says prepared to engage in ’currency war’

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July 17, 2011 (KHARTOUM) – The Central Bank of Sudan (CBoS) threatened that it is prepared to engage in what it described as a "currency war" with newly established Republic of South Sudan (RoSS) should both countries not reach an agreement on issues related to circulation of the retired Sudanese pound.

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Sudan’s Central Bank Deputy Governor Badr Al-Deen Mahmood holds up the new Sudanese currency during a news conference at the Central Bank headquarters in Khartoum July 16, 2011 (Reuters)

Sudan will launch its new currency later this month which appeared to be in response to RoSS announcement that it plans to start distributing the South Sudan Pound on the week of July 18th .

Officials in Khartoum appeared furious with RoSS’s move arguing that the latter has reneged on an understanding that both countries will maintain monetary unity for an interim period following the breakup of the country which took place over a week ago.

CBoS governor Mohamed Khair al-Zubeir emphasized that Sudan wants to cooperate with RoSS in collecting the old version of the pound circulated in the South which he estimated to be equivalent to $700 million.

The deputy CBoS governor Badr Al-Deen Mahmood was quoted by the pro-government Sudan Vision newspaper as warning of a "currency war" should RoSS engages in "foot dragging" with regard to withdrawing the old Sudanese pound from circulation in the new state.

"We do not want to engage in a war of currencies, but if the south wants so [be it]," he said. "We have no interest of occurring bewilderment to the economy of both countries".

CBoS governor Al-Zubeir said that RoSS wants to replace the old Sudanese pound circulated in the south only through exchanging it with foreign currency or commercial trade between the two countries.

Ibrahim Ghandour, a senior official with the ruling National Congress Party (NCP) in Sudan, accused the Sudan People Liberation Movement (SPLM) of working secretly to undermine the Sudanese economy.

"The agreement was for this currency [old Sudanese pound] to continue in circulation between six months and one year but we knew that the SPLM was printing its new currency secretly as part of a plot to sabotage the Sudanese economy even though we were genuine without [intention of] conspiracy," Ghandour said.

"They [SPLM] didn’t want anyone to know so that they are not surprised with a new pound and an old one circulated in the markets causing prices to rise" he added.

CBoS governor has revealed that Sudan has already created a new second edition of the currency in several colors to hedge the risks associated with the circulation of the old Sudanese pound in the South.

He added that Sudan has good experience in currency replacement suggesting that the transition will be a smooth one.

The Sudanese pound replaced the dinar in 2007, but its value has plummeted in recent months due to political uncertainty, a surge in food prices and weak state finances.

The old currency has been falling on the black market in Khartoum for weeks as economists say foreign currency inflows needed for imports will decline alongside falling oil revenues.

The south took about 75% of Sudan’s 500,000 barrel-a-day oil reserves with it when it left.

(ST)

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  • 18 July 2011 10:12, by Aleu

    Khartoum government must understand that, the South Sudan have been saying for six months since the election of referendum was done. The people of South Sudan are the one decide to see new currency and not the president.

    Forgotten about another six months to quit Sudanese pound. If you guys want to keep the name for Sudan then, you should be benefit. I know you guys are trying to go back to religious money dinar. Religion caused separation in Sudan and seemingly the domination have learn nothing but to repeated the root cause of civil war in the Sudan. More regions will follow South Sudan and Khartoum will remain isolate from the rest of African societies.

    repondre message

    • 18 July 2011 12:43, by Runrach

      I don’t think transforming currency will change anything in your current political arena, even you guys revert your terrorist and Islamic Dinar or Dinn-kum still nothing or even though you change your currency as Al-Bashir still be the same unless you have to hard to fulfill an international obligation by refraining from war and genocide with Southern Khordufan, Abyei,Nuba mountains and Blue nile State.

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  • 18 July 2011 12:24, by Nhomlawda

    Collect all Sudanese Pounds circulating in South Sudan and let Sudan government buys them with hard currency or give the money to Nuba Mountains’ Abdellaziz Al Hilu administration so that the money is dumped into Sudanese economy to cause super inflation.

    Tit for tat, unless Khartoum understands the language of respecting others’ interests.

    repondre message

  • 18 July 2011 13:42, by Martin Muong

    Dear North Sudanese it is too late for you to be decision makers of South Sudanese. If you have decided to plan for war on currency, then you are building the castle in the air. Let us sort out other problems rather than crying over the spilt milk. "Enough is enough" South Sudanese are independent, they can even make decision on their own without consulting you. Cut your losses because you have no leeway in foreign politics. Do you guys think that you will succeed in your conspiracy on currency war. It is good for human being to find out about the consequences of what he is planning, so that he will not remorse the decision he has made. Start provoking South Sudan cautiously otherwise who know what crazy thing they might end up doing. We are quite different guys no matter how we use Sudan to show our relationship.

    repondre message

  • 18 July 2011 16:48, by Matung Neng-neng

    My name is Matung Nengneng, I am looking to trade with Sudan Government: The Sudan Government will do the development and of course promote the Sudanese interest, I am sorry about such a faudale vote made by thiefs of SPLA Organization, they force our civilian to make that faudale voting.
    Now it time for Dinka to stay in their own area and Nuer in their own area. No messy around. I want my people to be free from Dinka enslaving. Have good day!

    repondre message

    • 18 July 2011 20:15, by deltakilo144@yahoo.co.uk

      Matung Nengneng! iam very sorry for the statement which got no root in it place,it is better to release this statement prerequisitely to the article which itching our body,what they Northerners so-called "War of Currency",hate does not liberate hate but love of charity can make it,darkness can not liberate darkness but light can maken it , to be Southerners we need to make and adopted what is so-called "Unity of Purposes",enslaving you talk about will be your bottleneck,ur statement described you not to be a patriotic and effective politician or effective leader.I wonder that you need to be told again that,Southern Sudan is an independent state,if you don’t believed it,make ur own movement and Southerners will face you.hope that you re a none visioned person in your family.

      repondre message

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