Khartoum — Sudan has decided to float its national currency, the pound, officially unifying multiple exchange rates including the black-market.
The Minister of Finance Dr. Jireel Ibrahim told a press conference at the Council of Ministers headquarters that his Ministry issued directives for the Central Bank of Sudan to adopt a flexible exchange rate in consultation with the commercial banks and the legal foreign currencies exchange offices.
Until yesterday the official exchange rate was 55 pound compared to nearly 400 pound for one dollar in the black market.
The minister said the decision was aimed to avert the collapse of the country's economy. The chronic structural disorders in the national economy, namely the huge deficit in the general budget and balance of payment, have led to unprecedented increase in the inflation rate and depreciated the value of the national currency, said the Minister.
Dr Jibreel conceded that inflation rise is expected but the government has taken full precautionary measures which would eventually lead to improvement and stability of the national currency exchange rate.
Jibreel said the new measure is planned to result in a number of objectives goals including attraction of Sudanese expatriates remittances and foreign investment, collection of exports revenues via the official channels and writing off Sudan's Foreign debt as part of HIPEC initiative.
Earlier attempts to devalue the pound were fiercely opposed by the economic committees of the Forces for Freedom and Change, the government political incubator.