Sudan: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Sudan

IMF Staff Country Reports, March 10, 2020

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Regime change has created a window of opportunity for fundamental reforms to address major macro imbalances and lay the groundwork for inclusive growth.
The economy is shrinking.
Fiscal and external imbalances are large.
Inflation is high.
The currency is overvalued.
Competitiveness is weak.
The humanitarian situation is dire with large numbers of internally displaced people and refugees.
There is broad agreement between the authorities and the IMF staff about the key reform priorities.
The authorities have yet to put together a fully coherent and viable plan that enjoys broad public support and can plausibly attract adequate donor financing.

US sanctions on trade and financial flows were revoked in October 2017, but Sudan remains on the state sponsors of terrorism list, which effectively discourages external investment and blocks progress toward both heavily indebted poor countries debt relief and the clearance of large arrears to the IMF.

In this context, staff engagement has intensified to render the necessary policy and technical assistance to help the authorities seize this once-in-a-generation opportunity for reforms.
Policy priorities emphasized by staff and authorities are aligned, but implementation requires:
- A fully coherent and viable reform plan.
- Broad public support for the reform plan.
- Adequate donor financing to make the plan plausible.

Subject: Banking, Currencies, Energy subsidies, Exchange rates, Expenditure, External debt, Foreign exchange, Money, Public debt
Keywords: CR, Currencies, debt, debt relief, Energy subsidies, exchange rate depreciation, Exchange rates, fund, Global, government, government assets, ISCR, Middle East, reform package, Sudanese authorities