Government of Hope’s Delay Plunges Sudanese Pound into New Crisis

Economic expert Mohamed Al-Nayir has disclosed the reasons behind the recent deterioration in the Sudanese pound’s exchange rate against foreign currencies. He attributed the decline to the delay in forming the transitional government (the Hope Government) and its impact on the performance of the country’s economic and monetary policies.

Al-Nayir explained to (Sudan Pulse) that the long period between the dissolution of the previous government and the announcement of the new one created an administrative vacuum that led to significant laxity in the implementation of fiscal and monetary policies, directly impacting the stability of the national currency.

Al-Nayir pointed out that the slow pace of currency exchange operations, mainly in the secured states such as Al-Gezira and Khartoum, contributed to increased speculation in the dollar.

He believed that the Central Bank’s delay in completing the exchange process was one of the biggest mistakes that must be addressed immediately.

Al-Nayir added that the return of banks to operation in Khartoum was not sufficient, as the capital hosted more than 500 of Sudan’s 800 bank branches, meaning that restoring full banking activity is crucial for market stability.

Al-Nayir asserted that exchange rate stability requires clear incentive policies, including stimulating exporters, increasing export revenues, rationalizing imports, and building foreign exchange and gold reserves.

He emphasized that the security role in supporting economic policies is equally important, but the absence of an effective government has significantly weakened these efforts.