Factors Effecting the Exchange Rate of the Sudanese Pound during the Period (2001-2020)

This study aims at finding out the most important factors affecting the exchange rate of the Sudanese pound during the period (2001 - 2020). It also aims at identifying the effect of the following variables: (gross domestic product (GDP), inflation rate, exports and imports,) on the exchange rate in Sudan during the study period. The study followed the descriptive analytical and statistical approach in the practical aspect. This study relied on secondary data such as books, references, scientific papers, magazines and official reports issued by the Central Bank of Sudan and the Central Bureau of Statistics. The major findings of the study are that there is a positive direct relationship between the exchange rate, GDP and exports. In addition, there is an inverse relationship between the exchange rate and all imports, and the rate of inflation. The most important recommendations of the study are to work towards low inflation rates by adopting policies that help reduce inflation rates where the central bank can maintain a stable exchange rate. The study also recommended the need to increase production and productivity and improve the quality of locally produced goods and services, which in turn increase GDP. This, in turn, reflects positively on economic growth and exchange rate stability.