The relationship between currency replacement and the liquidity crisis ✍️ Professor: Fikri Kabbashi, Al-Amin Al-Arabi
The relationship between the beginning of the second period of monetary replacement and the emergence of a liquidity crisis, as well as the setting of a daily withdrawal amount, I believe, and from my point of view, this question concerns several funny aspects, like according to what was reported in the news, the volume of liquidity circulating outside the banking system is equivalent to 90 trillion, and what was provided in the first stage it amounted to around 50 000 billion, or more than 55% of the total The volume of money supply was in the vaults of the banking system, and there are questions that money-issuing authorities are supposed to answer. At the Central Bank of Sudan:
1. Is the volume of liquidity equal to the product of goods and services?
2. What percentage of the 1,000 EGP note was replaced and was the same percentage printed?
3. What percentage of the 500 EGP note has been withdrawn from circulation, and has this percentage been replaced by other denominations in circulation…
The clarification should be made by the President of the Central Bank during a press conference to which all media, experts and specialists in financial studies are invited.
Other actors involved in the liquidity crisis are:
First: the Bank of Sudan, and there is no justification for setting a cap on cash withdrawals as long as there are currency denominations that have not been subject to change and can be exchanged. Likewise, the Bank of Sudan must enable the possibility of doing so. transfer from a commercial bank account to another bank by activating the Basic Bank Account Number (BBAN) system.
Second: Commercial banks are supposed to enable digital applications for trading, and currently the only effective application is your banking application, as well as providing Sell Point machines in all stores and markets, and we have more than 35 commercial banks if the applications were activated. in them, transactions would be facilitated and the need for paper money would be reduced.
Third: the Ministry of Finance must activate digital transformation so that all government institutions are obliged to pay all transactions that require the payment of sums of money to the State through applications and activate the SADAD program, as well as the receipt electronic E15, as well as the Treasury Single Account (TSA) program.
Fourth: A society in which we must raise awareness of change, to abandon the limitation of the use of banknotes in transactions and move towards other alternatives.
Fifth: The Ministry of Communications should provide communications services over the widest possible geographic area, especially in rural areas.
Sixth: Media agencies have the greatest responsibility to raise awareness in society, including providing insight into the health and safety harms that result from cash trading, as well as the benefits and gains associated with trading by others digital means in circulation…
Teacher: Fikri Kabbashi, Al-Amin Al-Arabi.
