Bank of Sudan says South has six months to replace currency
June 13, 2011 (KHARTOUM) – The Bank of Sudan announced on Monday that the soon to secede South will be given six months to replace its currency from the date it becomes officially a new state on July 9.
All this is done in agreement with the Government of Southern Sudan (GoSS), Al-Zubair said.
It is estimated that 10% of the monetary supply is in the South.
Following a referendum that was held in January, the people of Sudan voted almost unanimously in favor of separating from the North, a right given to them by the 2005 Comprehensive Peace Agreement (CPA).
Under the CPA the Sudanese Dinar was scrapped in favour of the Sudan Pound, a demand of South Sudan in the negotiations.
South Sudan has issued contradictory statements on whether they want to retain the pound after secession or create their own currency. Many economists said that the new state will not be able to support a new currency and would be better off maintaining its monetary unity with the North for at least a year.
The former governor of Sudan’s Central Bank Sabir Mohamed Al-Hassan in an interview earlier this year appeared critical saying that South Sudan refused to heed to advice by experts and consultants to form a monetary unity with the North.
Another option that was discussed in the South is to use the US dollar.
Last February diplomats told Reuters that the north had threatened making the potentially disruptive move of introducing its own currency during negotiations, but added it was just a tactic to win concessions from the south ahead of secession.
Observers say the oil-rich South is eager to break all forms of dependency on the North.
Sudan produces some 500,000 barrels per day of oil, but only 100,000-110,000 bpd are from wells in the north. The economy is dependent on oil for some 45 percent of its budget and most of its foreign currency revenues.
The landlocked South has explored the idea of building a pipeline that would pump oil produced in South Sudan through a Kenyan port instead of using Port Sudan in the North. However, the idea is costly and would take time to implement.
(ST)
Agutran
Bank of Sudan says South has six months to replace currency
Here is news flash for Sudan central Bank Governor, six months from now there will be no a single drop oil from south Sudan going to north Sudan! How about that?
South Sudan don’t care about paper money that much, we care about our land and it recourses.
Mr Famous Big_Logic_Boy
Bank of Sudan says South has six months to replace currency
The currency will be amended in weeks Banks of arabs, why would you panic? Its none of your business.
mohammed ali
Bank of Sudan says South has six months to replace currency
I donnot know why you are angry. All this was done with agreement of the GOSS and according to its wish. They refussed to have a monetary union with north against the advice of the expert from the IMF. That is their choice and their right.The central bank governor is just giving a report to what will happen and what was agreed upon with the GOSS.The GOSS was given what it wants and what is its right!
Blind hatred is detremental!
Deng Ateny Lueth
Bank of Sudan says South has six months to replace currency
Hello, mr. MOHAMED ALI, you always talk of blind hatred. let me just tell you, after South Sudan became officially independent, i reassure you, our hatred toward you arabs will amount exponentially to the high point unlike Iraelis-palistinian business. that day if you are still alive, trust me you would experience what a real blind hatred is then.
mohammed ali
Bank of Sudan says South has six months to replace currency
Deng,
Cngratulation, Deng; I can see what it is doing in the south people are talking through the barrel of the gun only. I can see that this making you very happy.
Enjoy it, untill it burns you, but be sure we will not allow it to spread towards us.
Hatred is an untractable disease!