The recent decline in the value of the Sudanese poundhas been attributed to various factors, including heightened military expenditures and a decrease in government revenue resulting from ongoing conflicts.
Sudan’s Finance Minister Gibril Ibrahim addressed these concerns at a press conference organized in Port Sudan that income generated had fallen to less than 20% to the ongoing conflict.
According to him, prior to the outbreak of conflict on April 15, 2023, the exchange rate stood at 570 pounds to the dollar. Presently, the exchange rate has surged past 1,200 pounds, leading to a significant spike in the prices of goods and services, representing an increase of over 100%.
Ibrahim noted that efforts to stabilize the exchange rate have been hampered by the substantial demand for foreign currencies, resulting in the depreciation of the local currency.
He explained thatthe current year’s budget priorities, which include fulfilling obligations related to the war effort, providing assistance to conflict-affected populations, addressing healthcare requirements, and concluding ongoing development projects.
Highlighting the economic downturn, Ibrahim revealed that the Sudanese economy was estimated to have shrunk by 40% in 2023, with a projected decline of around 28% this year.
This hardship is further compounded by the government’s decision to pay only 60% of its employees’ salaries while suspending bonuses and allowances.
