|
World Bank praises Sudan currency exchange process
Real estate news By Sudan Tribune
Monday 8 October 2007 04:30
The World Bank has praised the success of the introduction of new unified currency in the Sudan. The international body said today the new pound would result in greater efficiency and enhanced stability of the financial system. A strong stable currency is critical to job creation and poverty reduction - The new currency will improve the formulation and implementation of national monetary policy, restore normal local currency economic and commercial activity by reducing transaction costs, and importantly serve as a symbol for peace and unity by enhancing national economic integration and development – thus help to maintaining the integrity of the Comprehensive Peace Agreement (CPA).
“The introduction of the new unified national currency has largely been successful,” said Asif Faiz, World Bank Country Manager for Sudan, at a press briefing held today at the World Bank Office in Khartoum. Faiz said the new Sudanese Pound (SDG) has widely been distributed nation-wide, including Southern Sudan. The new currency had been accepted by the financial sector, and would result in greater efficiency and enhanced stability of the financial system. The project fulfilled a key requirement of the CPA, namely that the Central Bank of Sudan introduce a new unified national currency during the Interim Period to replace the multiple currencies that are currently in circulation in the country. This requirement is spelled out in Article 14 (9) of the Wealth Sharing Agreement of the CPA.
At the beginning of the exercise, the currency situation in the country was complex, creating serious problems for the economy. Before the signing of the CPA, the Sudanese dinar has been the legal tender (since 1992) in the areas controlled by the Government of Sudan. In most of Southern Sudan, however, several currencies co-circulate in various locations and combinations: for example, the “old” Sudanese pound, Kenyan and Ugandan Shillings, Ethiopian Birr, US Dollar, and the Sudanese dinar. This situation created real problems for the pricing system and the payment system, generated varying local exchange rates, and was not conducive to the reconstruction and economic re-integration and development of Southern Sudan.
Send tips or a Letter to the Editor to editor@updatere.com
|
