U.S. dollar skyrockets as Sudanese security hunt down currency traders

November 23, 2016 (KHARTOUM) – The exchange rate of the U.S. dollar on Wednesday went up to 19,00 Sudanese pound (SDG) in the black market as security services launches large arrest campaign against currency traders.

A trader in Khartoum told Sudan Tribune that the dollar price rose from 18, 2 pounds on Tuesday to 19,00 pounds on Wednesday, saying the economics department at the National Intelligence and Security Services (NISS) launched an intensive arrest campaign against black market traders.

The same trader expected the dollar price will reach 20,00 pounds within few days due to high demand and limited supply.

Earlier in November, Central Bank of Sudan (CBoS) introduced an incentive policy, increasing the exchange rate in commercial banks by 131%. As a result, the U.S. dollar exchange rate went up in banks to 15.8 SDG from the official rate of 6.5 SDG.

However this measure didn’t curb the rise of the dollar against the pound in the black market.

Sudanese authorities regularly carry out arrest campaign against currency dealers in the black market following the significant increase of the dollar price five years ago after the secession of South Sudan.

Governor of the CBoS had earlier said the currency dealers must be charged with high treason, pointing the rise of the dollar in the black market “unjustified” and a result of “speculation”.

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)