The Central Bank of Sudan CBS, announced the floatation of the official exchange rate of the national currency, the pound, starting Sunday, by significantly reducing the value of the pound in accordance with the adoption of the flexible managed exchange rate policy.
Sudan took the unprecedented but expected step of floating its currency Sunday, meeting a major demand by international financial institutions to help transitional authorities overhaul the battered economy.
The flotation is the boldest economic measure taken by the joint military-civilian government that has ruled the African country after a popular uprising. The revolt led to the military’s overthrow of autocrat Omar al-Bashir in April 2019. The country has since been on a fragile path to democracy with daunting economic challenges representing a major threat to that transition.
The Central Bank of Sudan CBS emphasized that the new policies would unify and stabilize the exchange rate, divert resources from the black market to the official market, and attract remittances from the Sudanese working abroad and the influx of foreign investment.
Sudan’s currency will now fluctuate according to supply and demand, according to a statement by the Central Bank of Sudan. It said the flotation is part of measures the transitional government has embarked on to help stabilize the country’s economy.
The U.S. Embassy in Khartoum welcomed the “courageous” move, saying it paves the way for debt relief and significantly increases the impact of international assistance