U.S. dollar hits record high against Sudanese pound

February 13, 2019 (KHARTOUM) – The U.S. dollar price on Wednesday hit an all-time high on the black market as the Sudanese pound declined to 83,00 per dollar.

Traders speaking to Sudan Tribune Wednesday in central Khartoum said the purchase price of the U.S. dollar through checks has reached 83,00 pounds while the cash purchase was 64,50 pounds.

It is noteworthy that due to the lack of liquidity in the banks, U.S. dollar carries two prices on the black market. The purchase price through checks is usually higher than the cash price.

A trader, who spoke to Sudan Tribune on the condition of anonymity, expected the dollar price to continue to rise during the next period, pointing to lack of liquidity in the banks.

He pointed out that the demand for the dollar has continued to increase despite the recent government measures, pointing to customers’ lack of trust in the banking system.

Economic conditions in Sudan have been challenging since the secession of South Sudan in 2011 and the loss of the bulk of oil production and exports.

The withdrawal of South Sudan oil has compounded the difficult external environment, including debt arrears, limited access to external financing, U.S. sanctions, and the withdrawal of correspondent bank relations.

The most recent International Monetary Fund (IMF) report indicated that Sudan’s gross international reserves remained very low in 2017 ($1.1 billion, 1¾ months of imports).

(ST)