Former Bank of Sudan Official: Removing Zeros Would Simplify Prices and Facilitate Transactions

Sudanhorizon – Hala Hamza

Former Assistant Governor of the Central Bank of Sudan, Abdullah Al-Hassan, described the government’s move to remove and shorten zeros from the Sudanese pound as not a new approach in Sudan, noting that it had been implemented twice during the era of the Salvation Government.

In an exclusive statement to Sudanhorizon, Al-Hassan proposed removing three zeros, followed by the implementation of a comprehensive emergency programme to prepare the Sudanese economy for the change. He called for coordination and alignment among the ministries of the economic sector and the Central Bank of Sudan, as well as the preparation of a matrix for each ministry outlining the policies and procedures required by the Central Bank and their implementation timelines to address contraction in gross domestic product, combat rising prices, inflation, and unemployment, and stabilize the exchange rate. He noted that this would help simplify the nominal value of prices and facilitate transactions among the public.

Al-Hassan stressed the importance of having the Central Bank of Sudan determine the denominations of coins and banknotes to help citizens make payments and settle transactions easily and conveniently. He also called for setting a date for the return of coins to circulation, known as the coinage range, to increase confidence in the currency and reduce printing costs, noting that coins are minted inside Sudan and have a longer lifespan than banknotes.

Al-Hassan called on the Central Bank of Sudan to prepare studies, research, and market analyses to determine the appropriate composition of coin and banknote denominations, the number of coins and notes of each denomination, and the optimal size of the money supply issued, using established systems and methodologies in monetary issuance literature. He also called for a comprehensive media plan to explain the proposed change, its impact on the nominal level of prices, and the period for exchanging old currency both inside and outside Sudan.

It is worth noting that zeros were removed from the Sudanese currency twice during the era of the Salvation Government. The first occurred in 1990, when the Central Bank of Sudan introduced the dinar as a replacement for the pound. The dinar was equivalent to 10 pounds, effectively removing one zero from the pound. The second occurred following the signing of the Comprehensive Peace Agreement in 2005, when the pound was reintroduced and one pound was issued equivalent to 100 dinars, effectively removing two zeros from the currency.

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