22 December 2013

Sudan: Economic Disaster for Sudan If South Sudanese Conflict Continues - Expert

Khartoum — The Sudanese economist Mohamed Ibrahim Kebej has warned that the flow of revenues for Sudan may be halted due to the armed conflicts in South Sudan.

According to Kebej, the general budget of Sudan for the year 2014 depends largely on the proceeds of the transfer of the South Sudanese oil per pipe line to Port Sudan, where it is shipped. The proceeds amount to 2.2 billion dollars.

"The control over the oil fields in Unity state by South Sudanese forces opposing President Salva Kiir may lead to an economic disaster. If the oil pipelines close, the already very weak Sudanese economy will deteriorate even more and will also nullify the 2014 budget reforms launched by the new Minister of Finance," Kebej explained, "since the success of the planned budget relies on the return of oil flows."

The weakness of the economic and financial government policies is reflected by the purchase of gold from small-scale producers at the world price and the increase in commodity prices, the economist explained.

He also warned about the continuing decline of the value of the Sudanese pound, which dropped to one-third compared to its value before the wage increases in October. "In this way, the recent salary raise does not have any meaning. The purchasing power of the Sudanese citizens will continue to decline too." (Source: Sada El Ahdas Sudanese newspaper)

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