Sudan: Parliament hears to CBOS Governor on the lack of banknotes


Khartoum — The National Assembly deliberated during its Tuesday sitting, which chaired by Deputy Speaker Dr. Ahmed Mohamed Adam Al-Tijani, on the report of the Central Bank of Sudan (CBOS) on the performance of the bank and the banking system for the year 2018.

The Governor of the Central Bank of Sudan Hussein Yahya Jungul presented, during the report, a full explanation on the phenomenon of the lack of banknotes in the banking sector, which began early last year, explaining the reasons for the abnormal rise in the movement of cash withdrawals, pointing to the efforts of the Central Bank to continue to provide the banknotes. He added that about 47.7 billion pounds were issued in 2018, confirming that this figure exceeded the total banknotes issued in the previous two years, admitting that the inadequacy of banknotes led to the continuation of the problem so far, revealing that a contract was made in the late first quarter of 2019 to provide the country’s needs of banknotes, pointing to the introduction of new denominations include 100, 200 and 500 pounds, expecting issuance of a denomination of 1000 pounds and to enter into circulation during the month of July, justifying that by meeting the demand for money with the smallest number of banknotes.

Jungul stressed the CBOS keenness to improve the liquidity management particularly in the supply of and demand for banknotes to achieve the macroeconomic objectives of the state. The CBOS governor reviewed the most important features of the Bank’s performance, pointing out to the internal and external factors and challenges that directly affect the Central Bank and the banking system in general, namely, the rise of inflationary pressures, increasing demand for foreign exchange and weak growth of the state’s foreign exchange revenues, in addition to the challenges facing exchange rate stability. He added that the external challenges, especially the repercussions of including the name of Sudan in the list of countries sponsoring terrorism, has cast a negative shadow on the banks and limited its ability to deal with the regional and global banking system.

The CBOS governor unveiled the successes achieved by the Central Bank despite the challenges facing it as it provided local finance to the central government to fund the budget deficit, meet the needs of development projects, provide foreign exchange to import strategic goods and pay part of the external commitments. For their part, MPs called on the Central Bank of Sudan to manage the exchange rate policy, calling for the independence of the bank, pointing to the problems facing the currency, especially the multiplicity of prices that contributed to the inflation.

They stressed that the policy instability has an impact on the foreign exchange shortage, calling for the tightening of the amounts allocated for strategic commodities, pointing to the exchange rate and its impact on the assets of banks, urging the need to develop plans to increase the export and stop the speculation on goods, stressing the importance of stability of policies pertinent to the economic sector and banking institutions. The statement was referred to the concerned committee for further study and report.

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Publish date : 2019-04-10 11:25:59

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