US dollar slightly loses ground to Sudanese pound on black market

May 29, 2013 (KHARTOUM) – The price of the US dollar has witnessed a slight decrease in the black market on Wednesday, settling at 6.9 Sudanese pounds (SDG), while the price of the euro was 8.3 SDG, and the Saudi riyal fell to 1.7 SDG.

Traders in the black market in Khartoum said that the price of the dollar declined following Sudan’s army recapture of Abu-Kershola town in South Kordofan.

Last week the dollar price amounted to 7.3 SDG.

A trader told Sudan Tribune: “We learned that the central bank has pumped dollars into commercial banks, boosting hopes for stabilising value of the Sudanese pound”.

He stressed that the dollar continues to decline against Sudanese pound in spite of the statements made by president Omer Al-Bashir in which he threatened to shut down the pipeline.

“We will be waiting to see what is going to happen on the ground, we are not yet sure that oil flow will stop” and added “if oil flow stops, dollar price will definitely reach 10 pounds SDG”.

Following the recapture of Abu-Kershola on Monday, president Bashir threatened to cancel all cooperation agreements signed with South Sudan last September if Juba continues to support rebel groups.

The most notable provision in the agreement is related to resumption of oil exports by landlocked South Sudan which were suspended more than a year ago because of a dispute over transit fees.

Khartoum expects to earn $500 million in revenue annually from transit fees of South Sudanese crude.

Sudan’s economy was hit hard since the southern part of the country declared independence in July 2011, taking with it about 75% of the country’s oil output.

(ST)