Sudan to Issue 100-pound Banknotes to Curb Inflation

Sudan’s central bank will soon be issuing 100 pound banknotes for the first time to tackle rising inflation and improve liquidity. When the south of Sudan quit in 2011 and formed a new Republic, Khartoum lost its oil resources, leading to economic turmoil in Sudan.

Commercial banks in the country are now facing a severe cash crunch and the withdrawal limit has been set to 500 Sudanese pounds only. The value of Sudanese pound has come down from 6.7 to about 29 pounds per dollar in 1 year. The country faces an inflation rate of almost 60 percent which is among the world’s highest. The black market is taking over the banking systems, leading to a bigger economic crisis.

The highest denomination in Sudan has been 50 pounds so far. The value of 50 pounds banknote has reduced considerably due to inflation. New 100 pounds notes would be introduced to manage this situation. Experts suggest that the central bank will have to increase money supply to curtail inflation.

Sources: mintageworld

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