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Khartoum: Political crisis casts shadow on Sudan

Protests in Sudan and the resignation of Abdalla Hamdok as prime minister have cast a shadow on the country's fragile economy already reeling from the pandemic.

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Hamdok resigned on Sunday following mass protests against a power-sharing deal he had signed with the army that overthrew the government in October.

His resignation came barely two months after being reinstated following his ousting in October. The deal was meant to calm tension and protests.

Hamdok attributed his resignation decision to the inability to form a new cabinet due to persistent protests.

Not only is his resignation a blow to the country’s economy, but it also provoked a new round of demonstrations demanding civilian rule on Tuesday in Sudan’s capital Khartoum and other cities.

On the economic front, among the things immediately affected by Hamdok’s resignation was the exchange rate of the Sudanese pound that started declining against major foreign currencies.

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In a report by Xinhua News Agency, dealers in the foreign exchange market said the exchange rate for $1 registered 457 Sudanese pounds on Tuesday in the parallel market, as compared to 450 pounds recorded in the past few days.

Declining currency

Analysts expect the local currency to continue declining in the coming days following the political crisis.

Similarly, the humanitarian crisis in the country is also deteriorating. Currently, 9.8 million people in the country are severely food insecure, according to the United Nations Office for the Coordination of Humanitarian Affairs.

Additionally, more than 3 million people are internally displaced and 314,547 have been affected by floods.

The UN agency estimated that about 14.3 million people will be in need of humanitarian assistance in Sudan this year.

According to independent organization Save the Children, Sudanese children are being forced to work long hours as the country’s economic and humanitarian crises continue to deteriorate.

Sudan is also currently facing resource scarcity, a scenario that has seen the east African country lift subsidies on gasoline, diesel and some food items. The country also increased electricity prices by more than 600 percent.

In an interview with Xinhua, Sudanese economic analyst Ashraf Zain Al-Abidin called on the authorities to search for resources so as not to burden the citizens.

“The authorities should search for other resources and diversify the sources of revenue. It cannot be at the expense of the average citizens,” Al-Abidin said.

He said the United States and international agencies suspended aid worth hundreds of millions of dollars to Sudan, while Sudan’s debt relief process under the International Monetary Fund’s Heavily Indebted Poor Countries Initiative is halted.

Following Hamdok’s resignation, UN Secretary-General Antonio Guterres urged all parties to continue engaging in meaningful dialogue in order to reach an inclusive, peaceful and lasting solution.

Source: CD

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