Sudanese pound slips against dollar after Gulf rift

June 6, 2017 (KHARTOUM) – The Sudanese pound Tuesday slightly fell against the American dollar in the black market flowing the diplomatic rift between several Gulf countries and Qatar which they accused of supporting terrorist groups.

The cost of a dollar on the parallel market rose to 18.6 Sudanese pounds from 18.4 pounds per dollar at the start of the week.

Traders in the parallel market explained the drop of the Sudanese pound saying the diplomatic rift would affect the transfers from the Sudanese Diaspora.

Further, they told Sudan Tribune that the confusion caused by the cut of diplomatic relations and Saudi Arabia’s closure of airspace to Qatar Airways planes.

Also, several Arab airlines have suspended their flights to Doha as the situation remains unclear about the effect of the ban on their flights from Khartoum to Doha.

Saudi Arabia, Bahrain and the United Arab Emirates have severed diplomatic ties with Qatar, accusing the tiny Gulf country of supporting terrorist groups. Egypt, Yemen and Libya’s eastern-based government have also joined the move.

The Riyal Qatari came under pressure of Tuesday after the decision of the Gulf countries to hold off on dealing with the Qatar’s banks.

Last May, the U.S. dollar price faintly declined on the black market following an announcement by the Central Bank of Sudan (CBoS) that it would infuse additional amounts of foreign currencies into the commercial banks in order to meet the needs of the merchants and importers.