KHARTOUM – The Central Bank of Sudan on Thursday announced the issuance of a new 2,000 pound banknote, along with a second edition of the 500 pound note, amid concerns over the implications of the move on inflation and the stability of the national currency.
The bank defined the technical specifications for the two new denominations, including dimensions, primary colors, security features, watermark, and the placement of serial numbers.
It also included detailed information about the front and back of the banknotes, as well as the tactile markings for the visually impaired on both sides, in a move aimed at enhancing protection against counterfeiting and improving the quality of cash transactions in local markets.
Sudanese economic correspondent Nazik Shamam told Ultra Sudan outlet that issuing a new 2,000 Sudanese pound note represents a resort to easy monetary solutions that fail to address the root causes of the economic crisis.
Shamam emphasized that this move reflects the continued devaluation of the Sudanese pound against foreign currencies, noting that the dollar has surpassed 3,500 pounds on the parallel market.
She predicted that introducing the new note will lead to a significant increase in the prices of basic commodities, exacerbating inflation and increasing the pressure on citizens amidst the structural imbalances plaguing the Sudanese economy.
Shamam explained that printing currency without monetary backing or reserves of produced gold exacerbates economic crises, according to established financial theories.
She expressed regret over the lack of effective reserves to support the issuance of the 2,000-pound note, considering that this step could have direct negative repercussions on the market.
She emphasized that the Sudanese economy faces dual challenges, including the ongoing war between the army and the Rapid Support Forces, alongside a financial crisis that requires careful attention rather than superficial solutions, calling for the adoption of more sophisticated and sustainable economic policies.