Sudan’s central bank says new law will ease pressure on exchange rate

September 12, 2011 (KHARTOUM) – The Central Bank of Sudan (CBoS) said today that amendments introduced this year to the foreign exchange law should ease pressure on the pound versus other currencies.

In an emailed statement attributed to CBoS Director of the financial markets administration Yahya Osman, it was noted that the law in its new form will go into effect soon after it was approved earlier by the national assembly and president.

The amendments pertain mainly to stiffening punishment on black market traders who became the last resort for many people seeking access to foreign currency.

Sudan has been hit by a scarcity of dollars caused by a drop in foreign investments, increase in imports tab and most recently losing the oil-rich south which became an independent state last July.

Many banks have said that they are unable to meet customers’ demand for Forex.

Travelers are restricted in the amount of hard currency they can buy and carry with them abroad. They are also required to submit documentation on the reasons for their travel to qualify for buying hard currency.

CBoS has kept injecting hard currency into the market but many analysts believe that the central bank’s low level of exchange reserves is hampering its ability to make a meaningful intervention.

The Sudanese government has implemented tough austerity measures earlier this year in preparation for the loss in oil revenues and inevitable decline in hard currency influx.

(ST)