Sudan central bank allocates $1 billion to stabilize pound, curb inflation

July 25 (PORT SUDAN) – Sudan’s central bank announced on Thursday a $1 billion fund to finance essential imports and bolster the Sudanese pound, which has plummeted in value since the outbreak of conflict in April.

The pound has been trading at 2,750 to the dollar on the black market, a steep decline from its pre-war rate of 570.

The central bank said the fund, led by the Bank of Khartoum, will be used to import strategic goods as identified by the Ministry of Trade and Supply. The aim is to stabilize the exchange rate and curb soaring inflation, exacerbated by the ongoing conflict and resulting economic hardship.

“The portfolio operates under our direct supervision and control,” the central bank said in a statement. “We are coordinating with regional and international institutions to secure additional foreign exchange resources for imports and commodity loans.”

The decline of the pound has fueled rapid inflation, placing immense pressure on Sudanese citizens who have lost jobs and livelihoods in the war. The central bank hopes the new mechanism will allocate foreign exchange more efficiently and transparently.

The bank also pledged to issue a circular to commercial banks outlining the new import regulations.