In Sudan, the crisis triggered by the October 25 coup is still deadlocked. Violent repression continues and the prospects for negotiations between the Putschists and the civilian opposition are still uncertain. At the same time, the Sudanese economy is being hit hard by the country’s isolation and the international context that is pressuring the military junta this week to take emergency measures.
In Sudan, everything is now increasing: petrol and diesel first, bottled gas, healthcare and even business licenses.
Deprived of international support and facing a severe shortage of foreign exchange due to the collapse of exports, the military junta therefore set up a budget that expects a 145% increase in tax revenues and 140% in consumption taxes, according to the Reuters. However, given the importance of the informal economy, these forecasts are very uncertain.
The Ministry of Economy, run by former rebel Jibril Ibrahim, may be tempted to print money to pay officials and government spending, but that would only encourage further inflation.
As a matter of urgency, the central bank therefore decided to allow the Sudanese pound to float on Monday, which automatically raised the dollar’s exchange rate and continued to push up prices.
To compensate for the losses of wheat due to the war in Ukraine, Jibril Ibrahim also asked the farmers the next day to increase their production and accept a lower price.
Juntan’s number 2, General Hemetimeanwhile, gold traders met on Thursday, a sector where he himself has personal interests, to supply the treasury.
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