) Books .. is the decline of the currency?

The central bank of Sudan has announced a trend to print a new currency in the category of (1000) pounds, according to the official spokesman of the bank, which is expected to be deposited in banks in the coming days, after the l '. completion of the design and preparation procedures for the impressions that are currently taking place, no launch date, Given the persistence of the liquidity crisis for more than a year, since the beginning of February 2018, the government has adopted undeclared measures to reduce the liquidity of citizens, in order to avoid the deterioration of the pound sterling against the dollar, including the setting of ceilings for withdrawal of bank deposits and the drying up of automated teller machines.

Indicators and risks
Despite the measures taken by the government to resolve the crisis, liquidity was not available satisfactorily, especially after rising demand for liquidity due to inflation, weak confidence in the banking system and the central bank's policy of restricting the money supply to protect the Sudanese pound. These conditions have led to a liquidity crisis that has intensified in recent days while waiting for new banknotes.
Former Prime Minister Moataz Moussa announced in mid-September that he was putting in place a series of arrangements to deal with the crisis and solve the liquidity problem within 7 to 10 weeks . The currency devalued sharply in early October, from 29 pounds to the dollar. Where a set of banks and exchange offices a price per day, but the official price is barely moving.
The government announced in October that it would continue to print tickets out of Sudan, which will arrive in four shipments until November 18, after the arrival of the first shipments on the 11th of last month , without disclosing the quantities printed.

What do the experts say?
The banking expert, Dr. Taha Hussein, said in his (Sudanese) speech that printing was not a viable solution to the liquidity crisis. "Any printing process will worsen the situation as it is not traded and stored, which increases inflation and causes speculation and inflation growth," Hussein said. .
While the professor of economics and finance at the Faculty of Administrative Sciences of the University of Khartoum, Ibrahim Ahmed Onour in his speech to (Sudanese) on the feasibility of printing large categories of 39; cash in the category of thousands of pounds, especially in light of the crisis of confidence in the banking system, pointing out that the printing of large categories of large currency encourages fraud.
Economic analyst Haytham Fathi, for his part, said in his speech to (Sudanese) that the printing of the new category was an indication of the approval of the monetary authorities to reduce the purchasing power of the Sudanese pound, Stressing that the printing process of currencies took into account inflation rates and high prices of goods and services as well as the rate of economic growth, A large category of money has positive effects in solving the problem of lack of cash flow for the moment but requires careful monitoring by the Central Bank. It is therefore necessary to solve the problems and challenges that the Sudanese economy is currently facing by examining the composition of the class currency. What is proportional to the size of the growth rates of the economic activity and for the citizen, it is as if a hidden tax would be felt only after having recovered its effects in the form of price increase and this is called in the economic policy of financing inflation, and increases: "The state has put more productive capacity resulting in higher prices."

Crisis of confidence
According to observers, the main crisis relates to the collapse of trust between brokers and the banking system, which has led the public to keep cash out of the banking system, that 's the only way to get the money out of the banking system. it's about assets, currency or cash.
Dr. Taha Hussain said that the total funds released from the banking system in the public amounted to 91 billion six hundred million out of a total of 97 billion, according to the report of the Central Bank, a very significant increase over to 74 billion out of the banking system in March 2018, the pound, which equals the monthly cash flow of the balance, transfers about $ 15 billion.
In this context, says Mohammed Abdul Rahim, banking expert, the management by the government of the recent crisis is not effective for reasons related to the crisis of confidence, where a mass of money was printed for the circulation, but the vendors seized it and prevented traffic.
Professor Ibrahim Ahmed Onour added that there was no solution to the crisis except a complete change of currency over a limited period, as well as the opening of bank accounts for the owners of funds and simplification of procedures, in addition to expanding the scope of electronic payment and facilitate the spread.

Procedures and treatments
The liquidity crisis came after the authorities had reduced the pound to 47.5 pounds instead of 29 pounds, while the gap between the official and the parallel market was widening to reach the forward sale of around £ 70.
Mr. Taha Hussein, an expert in banking, believes that a comprehensive policy should be put in place that includes all sectors of the state to prevent the flow of cash and monitor markets. Hussein proposes to withdraw trust in the category of fifty elderly books for two weeks and limit the release of the new version, while doing justice in the distribution of categories representing 87% of categories traded.
Hussein calls for confirmation of the use of electronic payment point markets, universities and hospitals in Khartoum and then in major states, pointing out that the lack of liquidity has increased the outlets by 80% this year, with about 29 million people carrying a phone and about 11 million Internet users in the country As well as the decision of the authorities to limit the sale and purchase of real estate and cars only by check of bank.
The economist Haitham Fathi warns against an inflationary wave resulting in a rise in prices if the proposed currency comes in the context of pumping a new currency and a new block without corresponding mass on the market.
Observers estimate that the printing of the 1,000-pound category constitutes a temporary treatment with serious negative effects on the value of the local currency and an increase in cash issuance with an increase in the flow of foreign exchange resources, this could lead to further deterioration in the value of the Sudanese pound against foreign currencies.
In any case, the radical solution to the liquidity crisis is to restore confidence in the banking system through progressive measures that build confidence in the electronic payment system by raising awareness and strengthening the legal and technical framework of the system. electronic payment process to reduce the number of files. From the currency or change it if necessary, which can be a positive option if the electronic payment experience is successful and extensive.