Home | News    Wednesday 3 June 2009

Sudan imposes new restrictions on hard currency purchases

separation
increase
decrease
separation
separation

June 2, 2009 (KHARTOUM) – The Sudanese central bank announced today that it is imposing a new cap on the amount of hard currency available to individuals travelling abroad.

JPEG - 11.6 kb
Sudan Central Bank

Sudanese media quoting the banking authority said that foreign exchange bureaus are only allowed to sell the equivalent of 1,500 Euros to travelers compared to 3,000 Euros in the past.

A third of the amount would be given in cash while the remaining amount will be wired to the buyer in the country he is departing to.

Furthermore the traveler would have to submit supporting documents as proof to his destination and his address.

The pro-government Al-Rayaam newspaper said that the exchange bureaus were also barred from dealing with diplomatic missions, regional or international organizations working in Sudan.

The new rule was justified by the central bank as a response to the quickly depleting foreign currency reserves. Sudan does not publish reports on the foreign reserves.

“The request is ... in line with the policy of the Bank of Sudan to minimize the demand for foreign exchange” Mohammed Osman, an official in the bank’s policy unit told Reuters.

“We have had a big drop in our Forex reserves” he added.

In April Sudan’s central bank governor Saber al-Hassan said that oil revenue accounts for 80% of cash inflows.

Al-Hassan said that the central bank is losing 80% of oil revenue “which created additional burden” and noted that foreign investments from Arab Gulf states in particular as well as outside aid were negatively affected by the credit crunch.

The global financial crisis has sent oil prices down sharply from its record levels reached last year. Sudan is heavily dependent on oil exports to fuel its economic growth and to provide hard currency.

Sudanese businessmen have complained that lack of hard currency is restricting their ability to import and have led to low supply of some products raising its prices to the customer and therefore curtailing its demand.

Last March Sudan central bank set ten classes of people allowed to buy foreign currency which includes travelers for leisure or medication, students, participants in conferences, foreign workers and pilgrims.

Sudan is under US sanctions imposed since 1997 that includes 31 government owned companies which limits their access to US financial system and US dollars.

(ST)

Comments on the Sudan Tribune website must abide by the following rules. Contravention of these rules will lead to the user losing their Sudan Tribune account with immediate effect.

- No inciting violence
- No inappropriate or offensive language
- No racism, tribalism or sectarianism
- No inappropriate or derogatory remarks
- No deviation from the topic of the article
- No advertising, spamming or links
- No incomprehensible comments

Due to the unprecedented amount of racist and offensive language on the site, Sudan Tribune tries to vet all comments on the site.

There is now also a limit of 400 words per comment. If you want to express yourself in more detail than this allows, please e-mail your comment as an article to comment@sudantribune.com

Kind regards,

The Sudan Tribune editorial team.
  • 5 June 2009 13:36, by Olatipol

    This is a comment to the topic,’’sudan imposes new restrictions to hard currency purchases’’.

    Much as it is important for the central bank to maintain a favourable level of it foreign reserve given the current prevailing economic crisis, unless otherwise,i see this move may not reach it, as projected by the central bank.

    How shall the central bank ensure that an individual only purchases the 1,500 set as a maximum amount yet, i believe, there are other local dealers in foreign currency within the country willing to sell any amounts to any person?

    This brings in the question: "What happens to the person who needs, say USD./Euro. 2,000 +, yet he can not wait to purchase the following day?". It is highly likable that he will go get from the next available dealer, and so forth till he accumulates the amounts he needs.

    Given the possibility of the existence of the non-registered dealers, is there any "watchful - eye" in place to monitor their activites? What effective measures,if any,are there to ensure that this move is a success?
    Unless otherwise, I just do not see it reaching there.

    OLATIPOL,

    KIU-Uganda

    repondre message

Comment on this article



The following ads are provided by Google. SudanTribune has no authority on it.


s
Sudan Tribune

Promote your Page too

Latest Comments & Analysis


Peacekeeping faces challenges: here’s how we can meet them 2018-09-23 11:47:05 By Jean-Pierre Lacroix* United Nations peacekeeping remains one of the most effective tools to respond to today’s challenges of global peace and security. Every day, women and men who serve under (...)

Pragmatic patriarchy of Sudan over South Sudan 2018-09-22 09:28:17 James Okuk, PhD “We honour the human capacity to manage our collective lives with peace and even, at times, dignity” – Barbour & Wright The political process of Sudan and South Sudan has (...)

Salient features of South Sudan latest peace deal 2018-09-21 05:36:06 By Roger Alfred Yoron Modi Last week, the government of South Sudan under President Salva Kiir, various armed and unarmed opposition groups and other parties, including the SPLM/A-IO led by Dr (...)


MORE






Latest Press Releases


Unity State community in Kenya supports Khartoum peace agreement 2018-08-17 08:33:21 PRESS STATMENT 14th Aug, 2018 Re: We shall Rally behind Khartoum Peace Agreement The Unity State Community Association in Kenya was established in 2010 to organize and mobilize the people of (...)

The Suspension of Hurriyat Online Newspaper 2018-04-29 07:04:37 Sudan Democracy First Group 28 April 2018 The Sudanese civil and political circles and those concerned with Sudan were shocked by the news that the management of Hurriyat online newspaper has (...)

Petition on the Deteriorating Human Rights and Humanitarian Situation in Sudan 2018-04-22 10:01:20 UN Secretary-General, New York African Union Commission, Addis Ababa UN High Commissioner for Human Rights, Geneva Petition on the Deteriorating Human Rights and Humanitarian Situation in Sudan (...)


MORE

Copyright © 2003-2018 SudanTribune - All rights reserved.