Sudan to release new banknotes in mid-January

By Omer Erdem</p> <p>KHARTOUM (AA) – The Central Bank of Sudan said Tuesday that new banknotes will be released this month as the country grapples with a severe economic crisis and cash shortage.</p> <p>“With an aim to resolve the banknote issue gradually, [Sudanese pound] banknotes of 100 ($2.10), 200 ($4.20) and 500 ($10.51) will be launched in mid-January,” Central Bank Governor Mohamed Khair Al-Zubair told a press conference in the capital Khartoum.</p> <p>He said they hoped to resolve the problem until April, noting the highest banknote on the market — the 50 pound note — is worth one dollar.</p> <p>Sudan has long been struggling with a serious economic crisis. </p> <p>Rising demand for cash due to inflation and the central bank’s policy of restricting the money supply to protect the pound have led to a sharp liquidity crunch. </p> <p>The cash shortage has hit an all-time high, prompting the release of banknotes higher than 50 pounds for the first time.</p> <p>The central bank also announced Tuesday that it intends to reduce the country’s inflation rate to 27.1 percent this year after it hit a record 68.93 percent in December.</p> <p>Sudanese authorities say at least 19 people were killed last month in street demonstrations in several states against rising prices and shortages of basic commodities.</p> <p>Opposition groups say the death toll is closer to 40.</p> <p>The authorities announced a state of emergency and curfew in a number of provinces over the protests, with government officials accusing Israel of plotting with rebel groups to foment violence in the country.</p> <p>A nation of 40 million, Sudan has struggled to recover from the loss of three-quarters of its oil output — its main source of foreign currency — when South Sudan seceded in 2011.