Do we really have a strategy to manage the war economy, and why don't prices go down with a fall in the exchange rate…?! #The_Autre_Dimension ✍️ Musaab Brier
» I followed with interest an interesting discussion in the Sudanese economic group, Future Visions, on the variation in the speed of rise of commodity prices in the market when the dollar exchange rate increases in a strange way and spontaneous, and the absence of decline. of raw material prices when the exchange rate falls, which is a worrying phenomenon long associated with the Sudanese market and which is almost unjustified or unjustified from an economic point of view.
» Under the relative improvement in the value of the Sudanese pound and the maintenance of commodity prices without falling, one of the economists involved, who monitors commodity dealers, brokers and crisis resellers, says that they increase the prices of goods. every hour during the days of deterioration of the Sudanese pound, but they continue without reacting to the fall in currency prices. The improvement of the Sudanese pound makes the theory of free market completely unsuitable for the Sudanese market.
” He adds: “Those days, the market was going up and not falling clearly, so we find the prices of daily consumables in the same market varying in price from one store to another, and a clear difference, which means that the matter is left to the conscience of the trader, and the expert wonders where is the role of the State and where is the role of the Chamber of Commerce. It is certain that the situation is unfolding without any control. . and he explains by saying: In all the market economies that we imitate today without governing references, for example, we find this commodity Because it is free, you will not ask, but it will not be able to sell to that. price, because there is free competition and many other merchants offer the item for $9.99.
» As for us in Sudan, the importers of goods are specific monopolists. A certain group is active in strategic goods. They are the ones who set the price for the traders, and the traders sell at the price of the monopoly importer. that we do not have free competition because from the start of the importation of the product, there is a monopoly.
Therefore, when the prices of raw materials fall globally, our importer does not understand this and does not want the value of his commodity to decrease, whatever the reasons, and the state finds itself helpless here facing importers and traders.
Another interlocutor said: “There is no monopoly in importation except for goods that have a distribution agent in Sudan. In this case, the agent is obliged to the price of the company that entrusts him. Because the company is in a marketing department, it obliges. him at the higher price, but I already work in the port in taxes, so there is no monopoly, on the contrary, only company names are imported and not those of a company. those who import and are not even a trader, but rather a citizen who imports only with their national number.. and we take the tax from them because they do not pay taxes to the state.. and he now concludes . Confusion and problems happen. of a large number of imports and without supervision, to the point where fresh water, sanitary water, flour, oils and even products already available are imported and harm the local product.
“By reflecting this gap, I wanted to analyze the causes of the imbalance in market mechanisms represented by supply and demand in our country, to show the extent of the fragility from which we suffer in the macroeconomic system. The current situation is the result of interaction. of several factors which all came together at the same time and collectively led to the situation we currently find ourselves in, which is summed up in the absence of an effective role for the State, i.e. say in the weakness of the State. role of monitoring the overall economic situation, which requires the existence of an economic group that brings together integrated specializations to operate the economy, and includes financial, monetary and trade policies, the so-called “the macro and international economics”, which specializes in the relationship of the local economy with the international economy, as well as in planning the role of each sector, such as agriculture, industry and services, in economic performance global, as well as specialists in finance and public finances, who are concerned by the general budget of the State.
“The main role of this specialized group lies in monitoring these economic performance indicators and achieving coordination and integration between them to serve the economic objectives set by the state and society. However, there is no current situation in which there is no coordination and integration between them. all these sectors, and the variables that led to them have resulted in The current inflationary wave can be summarized by the following points: poor economic performance and a decline in private sector participation in the national economy, resulting in a gap between supply and demand, which increased by a significant percentage without keeping up with supply at the same rate, thus causing inflation, macroeconomic instability and an increase in domestic debt. The internal debt is due to the successive and continuous deficit of the general state budget and the fluctuation of the exchange rate of the pound sterling in relation to other currencies, our production being dependent in a proportion which affects imports, therefore its cost and, therefore, its price increases, and the imbalance between wages and production, especially in the public and private sectors, So what is the balance? In most cases, the balance tips in favor of wages at the expense of production, so prices rise.
Last message :
In summary, the Sudanese market now suffers from fatal economic distortions, with weak control and monitoring of state mechanisms (the Ministry of Commerce and the rest of the consumer protection institutions, specifications and standards, and the Ministry of Health). of these organizations in Sudan are absent, and therefore the consumer is the only one to bear the poor specifications of the products and their poor quality, not to mention their astronomical prices. Finally, the war economy strategy (if any) that is currently. must be reviewed, while taking advantage of the opportunity to restore the powers of the security and intelligence apparatus, economic security having in the past proven very effective in its ability to impose a reasonable amount, the State must completely remove market chaos. monopoly and fees on commodities during this stage.
I didn't get it without God revealing it
God is enough and yes, the agent
O God, do not impose on us, because of our sins, those who do not fear you for us and do not have pity on us, O Most Merciful of the merciful.
#TheOther_Dimension | Brier Musaab |
Monday (May 20, 2024 AD)
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