Sudan’s Decision to Issue of New Currency May Cost South $700 Million

Sudan’s decision to introduce a new currency will cost newly independent South Sudan as much as $700 million, the secretary-general of the south’s ruling party, Pagan Amum, said.

Prior its independence on July 9, South Sudan and Sudan shared the Sudanese pound. South Sudanese officials said the government planned for a two-month switchover to a new currency and that about 2 billion old Sudanese pounds were in circulation in the south.

“The implication of the introduction of a new currency in the north is that the Sudanese pound is being made an illegal tender, with the Bank of Sudan not assuming responsibility for this currency which they have issued,” Amum told reporters today in Juba, the capital of South Sudan.

South Sudan released its own currency on July 18 and the authorities in Sudan’s capital, Khartoum, followed with the distribution of their new currency on July 24.

To contact the reporter on this story: Matt Richmond in Juba at mrichmond10@bloomberg.net

To contact the editor responsible for this story: Karl Maier at kmaier2@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.