CDP; the Controversial Issue among the Economists

Ahmed Ibrahim Ballal

Khartoum – Much controversy has been raised over the reduction of the value of the customs’ dollar (CD) from SDG 18 to SDG 15; while some do support the measure, the others do not-just rejecting it. Sudan Vision investigates the matter and comes up with this detailed report.
To begin with, the chairperson of the employers’ federal union, Saud Al-Bireir, praised the policy of the customs’ dollar (CDP) affirming that the order had received all the due support, especially on the part of private sector. ‘CDP will contribute in resolving all the problems as well as its contribution to the national economy’, going further to emphasize its positive reflections on, ‘the productive sectors, trade movement, facilitation of the flow of commodities freely and the reduction of production costs’.
In line, Dr. Hassab Al Rasoul Mohamed, deputy head of the importers’ chamber, said that they welcomed CDP which they saw as very supportive and rewarding to the private sector, pointing out that the previous and old CDP had resulted in the hike of the price of the imported commodities.
He went further to enumerate the advantages of the newly adopted CDP as follow; ‘limitation of smuggling. Increase of public treasury’s revenues. And decrease of inflation rates’.
Economist Mohamed Al-Nair said that CDP has had positive outcomes whose success depended on the efficiency of the private sector to control the market by reducing the commodity prices, adding that previous experiences showed that the private sector had benefited a lot from such a pattern.
He hopefully desired that the newly introduced CDP is not only to be limited to SDG 15, but to be further reduced to become only SDG 10, calling that CDP should not be badly misappropriated to increase the volume of imports.
Lt. Gen./police, Salah Al Sheikh, former director of the customs department, described CDP as the measure, expecting that the imports’ bill will get increased. ‘CDP encourages the importers to regain and resume previous activities which had been halted at the time when the CD was SDG 18’.
He saw that the success of CDP depends on the commitment of the traders and importer to decrease the prices of commodities in a similar way.
The supporters of CDP aside, there the opponents, conspicuous among them are these; former state minister at the ministry of finance, Dr. Izzel Din Ibrahim, said that CDP, would lead to the hike of commodity prices in the markets, indicating that it is associated with disadvantages; decrease of the government revenues which happened to be calculated based on SDG 18-the price for the customs’ dollar.
He continued to say that decrease in CD would lead to increase in the budget deficit which is to result in borrowing from the banking-a procedure that is to automatically lead to inflation.
The former state minister at the ministry of finance said that within the framework of CDP, the importation operations would increase-a move that is to culminate in more demand for the dollar, therefore the increase of the prices of commodities.
Adil Abul Al Muim, economical expert, described CDP as the wrong one whose outcomes are to plague the economy catastrophically. He said, ‘It is to result in financing through deficit and the devaluation of the Sudanese pound’, adding that the only beneficiaries of CDP are the importers and the traders.
And Hassan ‘Isa, head of the commercial chamber at the Khartoum state, said that CDP would not to result in the decrease of commodity prices, advising that the economy of the country is in bad need of adoption of urgent curative measures.

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