The Determinants of Informal Dollarization in Sudan (2010-During period (1995

Abstract

This study is aimed to identify the determinants of informal Dollarization existence in Sudan to be accordance with the International Monetary Fund, which determined 16% as an indicated informal Dollarization rate.
The study follows descriptive analysis approach to period (1995-2010).
The study concludes as follows:

The monetary system in Sudan reaches informal Dollarization in the most of the period study (1995-2010). Whereas the foreign currency rate deposits to money supply in the period of the study as follows:
In 1995 the results indicates to a high informal Dollarization in the economics reach about 31.61%
In the period (1996-2005), there was moderate indicator to occurence of informal dolarization (according to IMF study) the result shows that it reaches more than 16% in the period study
In the period (2006-2010) the average foreign currency deposit ratio to money supply amount to 13%, (in ignoring ratio), this decreasing refer to the stability of exchange rate and inflation rate.
The study gain access to main recommendations as follows:
Pursuing economic policies to aim at exchange rate stabilization, promote export goods which insure the availability of foreign currency resources wherefore increase the confidence level in dealing with bank system which endeavor to securing hard currencies