Sudanese pound continues to decline against U.S. dollar
July 10, 2017 (KHARTOUM) -The price of the U.S. dollar has witnessed a significant increase in the black market in Khartoum on Monday, settling at 19,4 Sudanese pounds (SDG).
They attributed the increase to the scarcity of the U.S. dollar and growing demand in the Sudanese market and the decline in remittances, saying the central bank doesn’t inject enough amounts of Forex to meet the demand.
A trader who spoke to Sudan Tribune on the condition of anonymity said if Washington decided to lift the sanctions, the dollar price wouldn’t decline significantly as had previously occurred due to the limited supply of dollar.
Last January, U.S. dollar price pulled back from 19.4 to 16.0 SDG on the black market following the U.S. decision to ease the economic sanctions but it soon rose again.
Last week, the director of Foreign Exchange Department at the Central Bank of Sudan (CBoS) Nur al-Din Mohamed Sulieman said they continue to provide Forex at the official rate for purposes of tourism and medical treatment abroad.
He told the official news agency SUNA on Monday that the CBoS hasn’t stopped Forex supply for these purposes, saying the funds are provided through various banks including the Al-Tadamon Islamic Bank, Animal Wealth Bank and the Sudanese-French Bank.
The Sudanese pound has lost 100% of its value since South Sudan’s secession in 2011, pushing inflation rates to record levels given that the East African nation imports most of its food.
Last November, the 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 halt the rise of the dollar against the pound in the black market.
(ST)