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Sudan's president brings back Zubeir as central bank governor
Sudanese Central Bank Governor Mohamed Kheir al-Zubeir arrives to hold a news conference at the Central Bank headquarters in Khartoum, July 16, 2011. PHOTO BY REUTERS/Mohamed Nureldin Abdallah
By Khalid Abdelaziz
17/09/2018
KHARTOUM (Reuters) - Sudan's president has nominated Mohamed Kheir al-Zubeir for a second term as governor of the central bank as authorities seek to contain economic turmoil that led to street protests at the start of the year.
Zubeir was previously central bank governor in 2011-2013 and had served prior to that as a state minister of finance. He replaces former governor Hazem Abdelqader, who died of a heart attack in June.
Zubeir's appointment, announced in a presidential statement, comes at a time when Sudan has been trying to battle a currency crisis and one of the highest inflation rates in the world.
It also comes a week after longtime President Omar al-Bashir dissolved the government, appointing a new prime minister and cutting the number of ministries by one third.
Zubeir's chances of success will depend on the development of new monetary policies and an end to political interference in the bank, said Khalid al-Tijani, and economic analyst and editor of Sudan's Eilaf newspaper.
"Zubeir has a thorough knowledge of the bank because it's the second time he takes this post, and he is one of the decision makers in the ruling party," Tijani said.
Data released on Sunday showed that Sudan's inflation rate had climbed to new highs in August at 66.82 percent. [nL8N1W20FA]
The central bank has restricted money supply in an attempt to curb inflation, imposing strict limits of as low as 500 Sudanese pounds on cash withdrawals that have led to long queues at banks.
During Zubeir's previous term as central bank governor in July 2011 South Sudan seceded from the north, taking three-quarters of oil output with it.
Sudan ruled out a call from the International Monetary Fund (IMF) late last year for the country to float the pound freely, but has devalued its pegged currency from 6.7 to about 30 pounds per dollar.
The pound has slipped to about 42 to the dollar on the black market.
(Writing by Aidan Lewis, Editing by Angus MacSwan)
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