Sudan’s series of reforms will have to include readjustments to the country’s currency, says Prime Minister Hamdook.Speaking at press briefing on Wednesday PM Hamdok said the Sudanese pound will be floated gradually in a bid to boost its value to other international currencies.
For this to happen, Hamdok said adjustments will have to be made on the 2020 budget as the country reels from the impact of the coronavirus outbreak.
The Sudanese leader said fuel subsidies will have to be removed but those on other commodities such as bread, cooking gas and electricity will not be touched.
Sudan’s economy has taken a direct hit from the coronavirus pandemic, incurring a 40 percent loss of public revenues, according to interim Finance Minister Hiba Mohamed Ali.
The minister said the government would earmark $484.7 million out the $1.8bn pledged by international donors to help subsidise a pro-poor scheme in Sudan.
However, the International Monetary Fund has warned that the Sudanese economy is on course to shrink by 8 percent by the end of the year notwithstanding a 25 percent contraction in 2019.
The new authorities in Sudan and the Bretton woods institution last month agreed on a series of reform packages which would shore up government revenue and removing energy subsidies to free up funds for spending on health and social welfare in general.