Prof. Al-Jack urges CBOS to adopt sound banknotes management policy

2019-06-26 18:56:21.000 | view 658 | share : |

Khartoum, June 26 (SUNA) – The Instructor of Economics at the University of Khartoum Prof. Mohamed Al-Jack called on the Central Bank of Sudan (CBOS) to develop new banknotes management strategy to contribute to solve the problem of liquidity shortage. In a statement to SUNA, Professor Al-Jak warned that the printing of banknotes without a cover of production, gold or a big reserve of foreign exchange resources would contribute to the aggravation of inflation rates and hence the weakness of the purchasing power of the citizens money in an unprecedented manner. He added that the solution of the problem of liquidity, and Sudan economy in general, laid in the increase of production and productivity in the vital sectors such as agriculture, industry, minerals and other economic sectors to meet the printed banknotes, if the Central Bank of Sudan insisted on solving the problem of liquidity by printing more banknotes. The professor of Economics at the Khartoum University pointed out that the new denominations of currency, whether the 1000-pound denomination others, when injected into the economy they will not be offset by real production a matter that increases the suffering of citizens, prompting the Central Bank of Sudan to adopt new policies to restore the confidence of customers in Sudanese banks, taking into account the quantity of money supply must be in the range of 20 to 25% of the country's GDP, according to the prevailing economic theories worldwide.