Foreign exchange policies and the exchange rate between flotation and hypnosis in light of economic policies A case study of Sudan during the period (2004 -2014)

Abstract

The study dealt with the exchange rate in Sudan between flotation and hypnosis (flexible managed)، the policies and package of measures that were followed during the period (2004-2014). The problem of the study was the continuous changes in exchange rates affecting prices and inflation rates. The study followed the descriptive historical، statistical and analytical method. The study reached the most important results، which are the existence of foreign exchange and exchange rate policies that have negative effects on the general level of prices and high inflation rates. Likewise، the reduction in the Sudanese pound exchange rate led to the weakness of the Sudanese pound’s value against foreign currencies، and the weakening of purchasing power، which increased the prices of imported goods، and this in turn resulted in hardship of living and the deterioration of the economic situation. The research recommended that the central bank should not interfere in the exchange rate to strike a balance between supply and demand for foreign currencies. And work to raise the value of the Sudanese pound against foreign currencies in the official market and to eliminate the parallel market، which greatly harmed the national economy. Increasing production، creating a climate for foreign investments in the country، and attracting foreign currency remittances from residents abroad