Identifier
Created
Classification
Origin
06KHARTOUM1922
2006-08-14 06:41:00
UNCLASSIFIED
Embassy Khartoum
Cable title:
NEW CURRENCY FOR SUDAN IN DECEMBER
how-toVZCZCXRO9344 PP RUEHROV DE RUEHKH #1922 2260641 ZNR UUUUU ZZH P 140641Z AUG 06 FM AMEMBASSY KHARTOUM TO RUEHC/SECSTATE WASHDC PRIORITY 4129 INFO RUCNIAD/IGAD COLLECTIVE PRIORITY
UNCLAS KHARTOUM 001922
SIPDIS
SIPDIS
DEPARTMENT FOR AF/SPG, AND EB/IFD/OMA
PASS TO AID/W FOR AF
E.O. 12958: N/A
TAGS: EAID ECON EFIN PREL PGOV SU
SUBJECT: NEW CURRENCY FOR SUDAN IN DECEMBER
UNCLAS KHARTOUM 001922
SIPDIS
SIPDIS
DEPARTMENT FOR AF/SPG, AND EB/IFD/OMA
PASS TO AID/W FOR AF
E.O. 12958: N/A
TAGS: EAID ECON EFIN PREL PGOV SU
SUBJECT: NEW CURRENCY FOR SUDAN IN DECEMBER
1. In an August 8 meeting, the Deputy Governor of the Bank of
Sudan said that new currency will be introduced in December.
Since donors have not come up with the contributions to pay
the cost of the conversion to the new currency, money from
the Oil Revenue Stabilization Account is being used to cover
the costs. The Deputy Governor asked for training in
conventional banking for central bank staff in the south.
End Summary.
2. Pol/Econ Officer met with the Deputy Governor of the
Central Bank, Elija Maluk, on August 8. Maluk, who is
concurrently head of the Bank of Southern Sudan (BOSS),
confirmed that the bank is moving ahead with plans to
introduce the new Sudanese Pound to replace the Dinar. The
conversion will probably be at the rate of ten Dinar to the
Pound. The introduction of the new currency is one of the
provisions of the Comprehensive Peace Agreement (CPA). The
Sudanese expected that international donors would help with
the cost of switching to the new currency, estimated at
roughly $154 million dollars. As donors showed little
interest in funding costs, the government decided to draw
from the Oil Revenue Stablization Account (ORSA) to pay for
the initial costs. Maluk said that if donors later came
forward with money, the ORSA would be replenished.
3. Maluk turned to the problem of setting up a conventional
banking system in the South. A key problem is lack of
trained or experienced personnel. He said that the BOSS has
80 to 90 staff members who need training in conventional
banking. Many of the staff members have been working in
Sudan's Islamic banking system, but will need to learn
conventional banking. Plans are being made to send BOSS
staff to the central banks in Uganda, Kenya, and Ethiopia for
training. Maluk asked if the USG could help to pay for this
training; Pol/Econ Officer replied that because of economic
sanctions, it would be very difficult for it to provide
training to Sudanese government employees.
HUME
SIPDIS
SIPDIS
DEPARTMENT FOR AF/SPG, AND EB/IFD/OMA
PASS TO AID/W FOR AF
E.O. 12958: N/A
TAGS: EAID ECON EFIN PREL PGOV SU
SUBJECT: NEW CURRENCY FOR SUDAN IN DECEMBER
1. In an August 8 meeting, the Deputy Governor of the Bank of
Sudan said that new currency will be introduced in December.
Since donors have not come up with the contributions to pay
the cost of the conversion to the new currency, money from
the Oil Revenue Stabilization Account is being used to cover
the costs. The Deputy Governor asked for training in
conventional banking for central bank staff in the south.
End Summary.
2. Pol/Econ Officer met with the Deputy Governor of the
Central Bank, Elija Maluk, on August 8. Maluk, who is
concurrently head of the Bank of Southern Sudan (BOSS),
confirmed that the bank is moving ahead with plans to
introduce the new Sudanese Pound to replace the Dinar. The
conversion will probably be at the rate of ten Dinar to the
Pound. The introduction of the new currency is one of the
provisions of the Comprehensive Peace Agreement (CPA). The
Sudanese expected that international donors would help with
the cost of switching to the new currency, estimated at
roughly $154 million dollars. As donors showed little
interest in funding costs, the government decided to draw
from the Oil Revenue Stablization Account (ORSA) to pay for
the initial costs. Maluk said that if donors later came
forward with money, the ORSA would be replenished.
3. Maluk turned to the problem of setting up a conventional
banking system in the South. A key problem is lack of
trained or experienced personnel. He said that the BOSS has
80 to 90 staff members who need training in conventional
banking. Many of the staff members have been working in
Sudan's Islamic banking system, but will need to learn
conventional banking. Plans are being made to send BOSS
staff to the central banks in Uganda, Kenya, and Ethiopia for
training. Maluk asked if the USG could help to pay for this
training; Pol/Econ Officer replied that because of economic
sanctions, it would be very difficult for it to provide
training to Sudanese government employees.
HUME