Settlements in dollars are prohibited, and electronic payment will raise the dinar – Sudanese advisor

0
45

Mazhar Muhammad Saleh, the Advisor to the Prime Minister for Economic and Financial Affairs, announced on Monday that the implementation of the electronic payment system will help preserve the monetary supply of the dinar and enhance its value against the dollar. It is important to note that internal settlements in dollars are not allowed.

The use of electronic or digital means for payments in the cash system ensures a high level of certainty and accuracy in determining liquidity in the banking system. This reduces ambiguity and uncertainty in banking liquidity. The payments system also provides detailed information about the flow of cash into the banking system, including the amounts paid and accumulated, and the actual balances at any given time during the banking working day.

In direct cash systems, banks use additional liquidity hedges to anticipate risks that disrupt banking and credit operations.

With the increase in electronic payments as a daily practice, it becomes essential to manage the flow of cash in the banking system clearly. This will enable banks to direct their credit towards profitable areas that make efficient use of the cash reserves. Furthermore, it will reduce the percentage of cash leakages outside the banks. A change in the behavior of individuals and banks towards electronic payment systems linked to bank accounts will lead to a structural shift in cash demand, resulting in a decline.

The payments environment has undergone significant development, transitioning from direct cash payments to electronic payments for both payment and receipt operations. However, local cash payments in currencies other than the national currency will be restricted. This will distance the economy from foreign currency cash payments and encourage the use of digital payment systems, which only allow transactions in the national currency within the local economy.

In Milan, the economy will switch from using cash dollars to digital dinars for internal transactions, which are now legally rejected.