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FFC: Floating the Pound is a Violation of the Budget Law

FFC Economic Committee objects the pound floatation which raises questions about how the alliance moves between the government and the opposition.
 Khartoum: Altaghyeer
 On Tuesday, FFC Economic Committee, denounced the transitional government’s decision to partially float the pound, and considered it a clear violation of the 2021 Budget Law.
 Last Sunday, CBS issued an official decision to partially float the pound as part of government efforts to solve the economic decline.
 The committee indicated in a statement, the government’s pledges to keep the official dollar rate within 55 pounds and the promise to reduce inflation before the end of this year to 95%.
 It warned of an explosion in inflation rates and an intolerable price increase for the average citizen.
 The Inflation reached 304% for the month of January compared to 269% in December last year.
 The Minister of Finance, Gebriel Ibrahim, confirmed that the government took all necessary precautions to stabilize the exchange rate.
 The committee considered the government’s decision to be the same as the former regime policies and a step towards the unknown in an attempt to keep up with the parallel market.
It stressed that this “leads only to the continuous deterioration in the value of the national currency”.
 The local currency collapsed to less than 350 pounds in the parallel market, after the decision, banks turned to sell at a price comparable to 375 pounds.
 A statement issued by CBS announced the unification of the exchange rate to ensure the entry of foreign currencies into the banking system and to attract the savings of expatriates.
 Gebreil said that the decision was taken by governmental consensus without external dictations and by consensus between the partners in government.
 CBS statement
 A statement issued by CBS announced the unification of the exchange rate to ensure the entry of foreign currencies into the banking system and to attract the savings of expatriates.
 The CB appended its decision to other justifications such as: attracting foreign investments, normalizing relations with regional and international financing institutions, stimulating producers, exporters and the private sector. End smuggling of goods and currencies, stopping speculation, in addition to helping exempt Sudan’s external debts by taking advantage of HIPC.
 The bank said that ensuring the success of the results of these policies requires solidarity and efforts of all relevant authorities. This includes government agencies and the private sector, and the implementation of the economic reform package immediately without delay and with full coordination.
 The statement pointed to the economic difficulties facing the economy, including structural imbalances, high inflation rates and a high budget deficit.
 It stressed that the lifting of US sanctions and Juba Peace Agreement necessitates a review of all economic policies.

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