Central bank liberalizes Sudanese pound

March 7, 2022 (KHARTOUM) – The Central Bank of Sudan Monday decided to liberalize the exchange rate of the Sudanese pound so that banks and exchange companies determine the price of the local currency without the intervention of the Central Bank.

The decision of the central bank comes less than 24 hours after a decision by the Higher Committee for Economic Emergency to unify the exchange rate of the Sudanese pound.

“This measure is part of integrated and sustainable reform monetary policies that will be issued successively aimed at stabilizing the exchange rate and increasing the ability of the banking system to attract resources,” read a statement released by the central bank.

After the coup d’état that ended the civilian-led transitional government in October last year, the international community suspended its economic support to Sudan.

As a result, the pound has continued to fall against the dollar day after day.

“Banks should set foreign exchange rates based on supply and demand,” reads a circular to the commercial banks issued by the Bank of Sudan on Monday.

The central bank also directed the commercial banks to announce their prices to the public daily.

In February 2021, the Hamdok government devalued the exchange rate from 55 for one dollar to 375 pounds.

Thanks to the international financial support to the government and the safety net programme for the vulnerable families.

Already in July 2021, the Sudanese pound registered gains against the dollar.

Sudan central bank had been regularly holding foreign currency auctions to feed commercial banks’ needs in a sign that its forex reserves are stabilizing.

On Sunday, the higher committee said the government will fund its budget from gold and other internal resources.

Also, once again the committee, which is chaired by the deputy head of the Sovereign Council, pledged to tighten security measures to fight gold smugglers and currency dealers.

(ST)