VZCZCXRO9344
PP RUEHROV
DE RUEHKH #1922 2260641
ZNR UUUUU ZZH
P 140641Z AUG 06
FM AMEMBASSY KHARTOUM
TO RUEHC/SECSTATE WASHDC PRIORITY 4129
INFO RUCNIAD/IGAD COLLECTIVE PRIORITY

UNCLAS KHARTOUM 001922 
 
SIPDIS 
 
SIPDIS 
 
DEPARTMENT FOR AF/SPG, AND EB/IFD/OMA 
PASS TO AID/W FOR AF 
 
E.O. 12958: N/A 
TAGS: EAID ECON EFIN PREL PGOV SU
SUBJECT: NEW CURRENCY FOR SUDAN IN DECEMBER 
 
¶1. In an August 8 meeting, the Deputy Governor of the Bank of 
Sudan said that new currency will be introduced in December. 
Since donors have not come up with the contributions to pay 
the cost of the conversion to the new currency, money from 
the Oil Revenue Stabilization Account is being used to cover 
the costs.  The Deputy Governor asked for training in 
conventional banking for central bank staff in the south. 
End Summary. 
 
¶2. Pol/Econ Officer met with the Deputy Governor of the 
Central Bank, Elija Maluk, on August 8.  Maluk, who is 
concurrently head of the Bank of Southern Sudan (BOSS), 
confirmed that the bank is moving ahead with plans to 
introduce the new Sudanese Pound to replace the Dinar.  The 
conversion will probably be at the rate of ten Dinar to the 
Pound.  The introduction of the new currency is one of the 
provisions of the Comprehensive Peace Agreement (CPA).  The 
Sudanese expected that international donors would help with 
the cost of switching to the new currency, estimated at 
roughly $154 million dollars.  As donors showed little 
interest in funding costs, the government decided to draw 
from the Oil Revenue Stablization Account (ORSA) to pay for 
the initial costs.  Maluk said that if donors later came 
forward with money, the ORSA would be replenished. 
 
¶3.  Maluk turned to the problem of setting up a conventional 
banking system in the South.  A key problem is lack of 
trained or experienced personnel.  He said that the BOSS has 
80 to 90 staff members who need training in conventional 
banking.  Many of the staff members have been working in 
Sudan's Islamic banking system, but will need to learn 
conventional banking.  Plans are being made to send BOSS 
staff to the central banks in Uganda, Kenya, and Ethiopia for 
training.  Maluk asked if the USG could help to pay for this 
training; Pol/Econ Officer replied that because of economic 
sanctions, it would be very difficult for it to provide 
training to Sudanese government employees. 
HUME