US dollar price drops slightly against the Sudanese pound

May 1, 2017 (KHARTOUM) – The US dollar price on Monday has slightly 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.

Dollar price ranged from 17,5 to 17,800 Sudanese pounds (SDG) for more than 45 days, however, last week it increased to 18,4 pounds before it declined to 18,1 pounds on Monday.

Traders in the black market in Khartoum told Sudan Tribune the decline was a result of reports that the CBoS would supply banks with hard currencies in order to meet the needs of the merchants and importers.

They pointed that purchase of dollar has decreased on Sunday and Monday for fear of a further decline in its price, expecting the dollar price to increase within a couple of days.

“This decline is temporary and we know that because the CBoF doesn’t have enough dollar reserves to meet the needs of the market,” said a trader.

On Saturday, the official news agency SUNA quoted an unnamed source as saying the CBoS beginning on Sunday will supply a number of commercial banks with foreign currencies, pointing the dollar reserves have improved due to the increase in gold exports and resumption of banking transactions with global banks.

In its latest report on Sudan last October, the International Monetary Fund (IMF) said Sudan’s already low foreign exchange reserves has dropped to 1½ month of imports.

The U.S. dollar price last January declined from 19 to 15 pounds on the black market in the Sudanese capital, Khartoum following the U.S. decision to ease the economic sanctions imposed on the east African nations for two decades.

At the time, Sudan’s Finance Minister Badr al-Din Mahmoud on Saturday announced they are developing a comprehensive plan to review the foreign exchange policy in light of Washington’s decision to ease sanctions.

Sudan has been under American economic and trade sanctions since 1997 for its alleged connection to terror networks and remains on the U.S. list of state sponsors of terror. The first batch of sanctions restricts U.S. trade and investment with Sudan and block government’s assets of the Sudanese government.

(ST)