Home | News    Tuesday 14 November 2017

Sudan won’t free float its currency: minister

separation
increase
decrease
separation
separation

November 13, 2017 (KHARTOUM) - Sudan’s Finance Minister Mohamed Osman al-Rikabi Monday has denied intentions to float the exchange rate of the Sudanese pound.

JPEG - 20.9 kb
A Sudanese man shows freshly-minted notes of the new Sudanese pound in Khartoum on July 24, 2011 (Getty)

A floating exchange rate is a regime where the currency price is set by the forex market based on supply and demand compared with other currencies.

This is in contrast to a fixed exchange rate, in which the government entirely or predominantly determines the rate.

In November 2016, the Central Bank of Sudan (CBoS) introduced an incentive policy, increasing the exchange rate in commercial banks by 131%. As a result, the U.S. dollar exchange rate went up in banks to 15.8 SDG from the official rate of 6.5 SDG.

However, this measure didn’t halt the rise of the dollar against the pound which has reached 24.7 SDG in the black market.

Several economists, including former Finance Minister Abdel-Rahim Hamdi, have recently called on the government to give up the system of managed floating exchange rate and allow the market mechanisms to set the price of the pound.

They say the move would allow drawing foreign capital back to the country, improving Sudan’s external competitiveness, supporting exports and attracting foreign investment.

In press statements at the National Assembly Monday, al-Rikabi said the government has no intention to float the price of the Sudanese pound, describing any reports in this regard as mere “rumours”.

He pointed out that his ministry would take a number of measures to strengthen the price of the pound, stressing the value of the pound would stabilize in the few coming days.

The Sudanese pound has lost more than 100% of its value since South Sudan’s secession in 2011, pushing inflation rates to record levels given that the East African nation imports most of its food.

The most recent International Monetary Fund (IMF) report indicated that Sudan’s foreign reserves cover approximately one and a half months of imports.

Comments on the Sudan Tribune website must abide by the following rules. Contravention of these rules will lead to the user losing their Sudan Tribune account with immediate effect.

- No inciting violence
- No inappropriate or offensive language
- No racism, tribalism or sectarianism
- No inappropriate or derogatory remarks
- No deviation from the topic of the article
- No advertising, spamming or links
- No incomprehensible comments

Due to the unprecedented amount of racist and offensive language on the site, Sudan Tribune tries to vet all comments on the site.

There is now also a limit of 400 words per comment. If you want to express yourself in more detail than this allows, please e-mail your comment as an article to comment@sudantribune.com

Kind regards,

The Sudan Tribune editorial team.

Comment on this article



The following ads are provided by Google. SudanTribune has no authority on it.



Sudan Tribune

Promote your Page too

Latest Comments & Analysis


The influence of facetious leaders in South Sudan 2018-12-03 18:44:28 By Daniel Abushery Daniel It's like that old saying, "Everybody's talking about the weather, but nobody ever does anything about it:" Public consultation is essential and healthy where there are (...)

Will Khartoum peace agreement bring reform or maintain tyranny? 2018-12-01 05:41:01 By Duop Chak Wuol Known for operating with a vicious precision, his trademark is ruthlessness, and how he manoeuvres his political rivals is irrefutably effective. Salva Kiir, the man in (...)

US-Sudanese relations: moths to the fire 2018-11-25 11:07:23 By Muhammad Osman & Magdi el Gizouli The rapprochement between Sudan and the U.S. progresses with the pace of an anxious flirtation. Less than two years since it began in 2015, that (...)


MORE






Latest Press Releases


Progress observed at end of second month of R-ARCSS implementation 2018-10-22 06:44:02 Press Release 21 October 2018 South Sudanese government released 24 detainees in the implementation of the revitalized peace agreement said the International Committee of the Red Cross (ICRC) (...)

4th Annual Tony Elumelu Foundation Entrepreneurship Forum Announced for 25th October 2018 2018-10-15 12:38:14 PRESS RELEASE OCTOBER 14, 2018 Africa’s leading entrepreneurship-focused philanthropic organisation, the Tony Elumelu Foundation (TEF), has announced October 25, 2018, as the date for its (...)

Unity State community in Kenya supports Khartoum peace agreement 2018-08-17 08:33:21 PRESS STATMENT 14th Aug, 2018 Re: We shall Rally behind Khartoum Peace Agreement The Unity State Community Association in Kenya was established in 2010 to organize and mobilize the people of (...)


MORE

Copyright © 2003-2018 SudanTribune - All rights reserved.