The Central Bank of Sudan is going to release new banknotes in January to tackle inflation and cash shortage in the country. Banknotes of denominations like 100, 200 and 500 Sudanese Pounds are going to be introduced, as per details revealed at an official press conference last week.
The 100 Sudanese pounds are approximately equal to $2.10, 200 pound is equivalent to $4.20 and 500 pounds are worth $10.51. The highest denomination currently circulating is the 50-pound note which is merely equal to one dollar. The Central Bank officials hope that the problem will be resolved by April.
Sudan has been facing an economic turmoil for a long time. Due to increasing inflation, the demand for cash has risen as well. However, the Government has been reducing liquidity to protect the pound’s value. Since the condition is only worsening by restricting liquidity, the Bank has decided to introduce new high denomination notes.
The inflation rate in Sudan had hit 68.93 percent in December. By introducing new notes bearing high denomination, the Central Bank hopes to reduce this number to 27.1 percent. Several lives have been lost in street demonstrations and protests against the Government’s inability to handle this severe economic crisis. A state of emergency and curfew was imposed in various provinces to curb these protests. Sudan lost 3/4th of its oil output when the country of South Sudan was formed in 2011. These oil resources were the main source of income for Sudan. Now that most of the oil reserves have been lost, Sudan is not able to recover from the economic losses and pressure.
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