Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

UPDATE 2-Sudan names new cbank governor ahead of country split

Published 03/07/2011, 10:28 AM
Updated 03/07/2011, 10:32 AM

* New governor will have big role to play in separation

* Biggest challenge is dwindling foreign reserves: analyst

KHARTOUM, March 7 (Reuters) - Sudan on Monday named former state finance minister Mohamed Kheir al-Zubeir as the new governor of its central bank, a day after the resignation of his predecessor Sabir Mohamed al-Hassan.

The timing of Hassan's departure, just four months before the secession of the country's oil-producing south and in the midst of an economic crisis, dismayed many.

But sources in the banking industry on Monday said they were encouraged by the speed of the replacement and Zubeir's experience.

"Dr Sabir is a loss. It is something that everyone agrees," said one senior banking official, speaking on condition of anonymity.

"Definitely Mohamed Kheir al-Zubeir's background -- as chairman of a bank, minister of finance -- will give comfort to the system," the official added.

Sudan's state news agency Suna announced the appointment with a text message alert: "Mohamed Kheir al-Zubeir appointed governor for Bank of Sudan."

Southerners overwhelmingly voted to declare independence in a January referendum, promised in a 2005 peace deal that ended decades of north-south civil war. The south is due to secede on July 9.

Uncertainty over how the two nations will disentangle themselves, and fears of a return to conflict, have added to an economic crisis that has created foreign exchange shortages, an effective currency devaluation and rising inflation.

"The greatest challenge for the new governor will be the foreign exchange situation after secession," said Abda al-Mahdi, the head of economic consultancy UNICON, before Zubeir's name had been released.

Mahdi, herself a former state minister of finance, added the governor would also have the tricky task of handling relations with the south after the split.

Up to 75 percent of Sudan's oil reserves, its main foreign currency earner, lie in the south and will be lost to the north after the split.

The south has also decided to introduce its own currency after separation and will need the north's cooperation to redeem the old Sudanese pounds circulating in its system.

Zubeir's job, which currently covers the whole country, will only cover the north after the south's secession.

Sudan's central bank on Sunday said Hassan, 65, was stepping down because of his age and the arduous nature of the job. (Reporting by Khalid Abdelaziz and Andrew Heavens; Editing by Toby Chopra)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.