Macroeconomic Management And The Black Market For Foregin Exchange In Sudan

High exchange rate premiums make controlling inflation more difficult and hurt both official exports and tax revenue from foreign trade. A high premium also accelerates capital flight.

This Selected Issues paper examines the monetary policy framework in Sudan, and assesses the effectiveness of monetary transmission mechanism since the secession of South Sudan. The econometric analysis concludes that reserve money, the exchange rate, and private sector credit are the main determinants of inflation after the secession of South Sudan and that the transmission lags have been shortened significantly compared with previous studies. These findings reinforce the need for a comprehensive package of fiscal and monetary measures that strengthens the monetary policy framework and improves its effectiveness.

Some central banks have maintained overvalued official exchange rates, while unable to ensure that supply of foreign exchange meets legitimate demand for current account transactions at that price. A parallel exchange rate market develops, in such circumstances; and when the spread between the official and parallel rates is both substantial and sustained, price levels in the economy typically reflect the parallel market exchange rate. “Recognizing reality” by allowing economic agents to use a market clearing rate benefits economic activity without necessarily leading to more inflation. But a unified, market-clearing exchange rate will not stabilize without a supportive fiscal and monetary context. A number of country case studies are included; my thanks to Jie Ren for pulling together all the data for the country case studies, and the production of the charts.

Volume 2 of an analysis of the economic development of Sub-Saharan Africa, 1960-2000.

The impact of international migration, both South-South as well as South-North, on the economic, social and political life of the people in Eastern and Southern Africa [was] not well documented and studied, and the evidence-base for policy on migration and development [was] very weak. With this in mind, OSSREAs invitation to conduct a study on international migration in Africa had the following objectives: To analyze the nature and type of South-South migration, focusing on issues, such as brain gain and/or brain drain, remittance flows, technical knowhow transfers, violations of the right of African migrants and gender dimensions of migration; To investigate the dynamics of migration from Eastern and Southern Africa to the Arab Gulf States as well as to developed countries, focusing on the skills of migrants, brain gain and/or drain, remittance flows, technical know-how transfers, violations of the rights of African migrants and gender dimension of migrants; and to assess the successes, impediments and challenges of African international migrants from Eastern and Southern Africa and to formulate policy recommendations to maximize the gains and minimize the costs associated with international migration in Africa.

A variety of perspectives from leading economists provides fresh insight into how Arab countries may best exploit their oil revenues.