Sudan Freezes Funds of Export Firms as Coup Prompts Dollar Slump

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Sudan Freezes Funds of Export Firms as Coup Prompts Dollar Slump | Bloomberg archive.fo/FTHPA

21 sats \ 5 comments \ @KenyaCoin 19 Feb 2022 bitcoin

0 sats \ 3 replies \ @KenyaCoin OP 19 Feb 2022

The U.S., Europe and international financial institutions such as the World Bank have withheld around $3 billion in financial support this year for electricity, irrigation and education projects among others following October’s military coup.

[...] the government would take “appropriate measures” to oblige exporters to cash their revenues domestically.

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Sudan Freezes Funds of Export Firms as Coup Prompts Dollar Slump https://www.bloomberg.com/news/articles/2022-02-18/sudan-freezes-funds-of-export-firms-as-coup-prompts-dollar-slump

0 sats \ 1 reply \ @KenyaCoin OP 19 Feb 2022

Capital and currency controls may backfire, accelerating the move into bitcoin. While the volume of P2P bitcoin trading in Sudan is at a trivial level, that volume can rise quickly if exporters in Sudan discover bitcoin (as the only remaining method for them to send payment without needing to transport cash and gold across borders) and then can justify paying a large enough premium for those bitcoin that it gives incentive for foreign currency conversion vendors and others to try and acquire bitcoin in any manner possible. (so as to sell for the premium that the exporters are willing to pay).