Sudanese pound continues to decline against U.S. dollar
November 14, 2017 (KHARTOUM) -The Sudanese pound fell to a record low on Tuesday, said currency traders on Tuesday.
Another trader speaking to Sudan Tribune in central Khartoum said there has been unprecedented demand for the U.S. dollar, pointing out that a major company has purchased from him $200,000 at the price of 25,5 SDG.
He added the U.S. dollar price has increased by 3 pounds during one week, saying such an increase didn’t occur in years.
For his part, Sudan’s former Minister of Agriculture Abdel-Halim al-Mutaafi on Monday warned the U.S. dollar price could soon reach 30 pounds if things go at this pace.
On Monday, Sudan’s Finance Minister Mohamed Osman al-Rikabi denied intentions to float the exchange rate of the Sudanese pound.
Sudanese economists stress the government is the largest buyer of the dollar from the black market including the central bank and other government institutions.
“The government has lost most of the resources which provide hard currency. Their dependence on gold does not cover even 30% of the [import] needs such as gasoline, wheat and drugs” one of them said.
They doubt that the government uses its Forex resources to increase the foreign reserves, pointing that optimal allocation of the dollar should have lowered its price in the black market.
The most recent International Monetary Fund (IMF) report indicated that Sudan’s foreign reserves cover approximately one and a half months of imports.
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)