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Forex bureaus in Sudan hike exchange rate to curb black market

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June 11, 2012 (KHARTOUM) – Forex Bureaus in Sudan on Monday started using higher exchange rates for the US dollar in a bid to match its value in the black market and prevent further depreciation of the local currency.

Last month the Central Bank of Sudan (CBS) made a bold effort to curb the thriving black market by allowing Forex bureaus to buy and sell currencies using their own exchange rates as opposed to the official one.

The effort is hoped to bridge the huge gap between the official exchange rate and that used in the black market, where the US dollar continues to trade for twice the official rate of 2.7 Sudanese pounds despite multiple interventions by the central bank to inject hard currency.

Last week the Sudanese pound hit an all-time low of 5.55 in the black market as the central bank failed to supply Forex bureaus with enough hard currency to meet demands.

The secretary-general of the Forex Bureaus Union (FBU), Abdel Al-Moniem Nur Al-Deen, on Monday said that Forex bureaus had decided to hike their exchange rate to 5.53 pounds in the hope of greater proximity to the black market rate.

Nur Al-Deen justified their decision by saying that they had realized that the daily fixed quota of 3,500 USD allocated to Forex Bureaus by the central bank had been leaking to the black market through some traders who present fake travel documents in order to get dollars at the official rate then sell them back in the black market.

The FBU previously announced that some citizens applying for hard currency on travelling justifications have had their requests turned down after it was discovered that they were put up to it by black market traders who buy their dollars to sell them later at a higher rate.

Sudan has been struggling to contain the deteriorating value of its own currency as the flow of hard currency was sharply curtailed following the secession of the oil-rich South Sudan last year.

(ST)

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  • 12 June 2012 10:52, by Ayom Dor

    The whole economic system in Sudan is messed up by the ministry of finance, your country will be a failed state and economy will collaspe, if Bashir doesn’t remove him..the value of yr currency against dollars was fixed and now z you want it freely for mkt forces to determine the value..you r exporting inflations and yr money, will be valueless!! Mismanagement!!

    repondre message

    • 12 June 2012 11:14, by Corrector

      you do realise what you said makes absolutely no sense from a macroeconomic point of view. Actually it doesn’t make any sense at all. Either way, Sudan is our business, hell is yours, with your 98% collapse of GDP and 80%+ inflation. We have industry and a skilled work force, all you have are cattle and broken dreams.

      repondre message

  • 12 June 2012 13:20, by sudani

    Corrector

    if we cows and bright future dreams which we know will come true then it is good. We have animal resources in addition to our natural resources. We are the rich country than yours. the price of meat in Khartoum is 4 times in the south. 1kg is 60 sdg and is 10 ssp here in the south. your economic is the worst than ours.

    repondre message

    • 12 June 2012 16:18, by zulu

      Sudani,
      What was happening in south sudan is that the gdp is higher and thus prices reflect the affordability. price range has almost nothing to do with how the economy is performing. sudan has been subsidizing most of the commodities and regulating the market. in the south, the government lets the markets a free enterprise in setting prices

      repondre message

    • 12 June 2012 17:19, by Northern Sudanese

      sudani

      stop making up propaganda, currently Unity state citizens are leaving the state due to high prices. you have 80% inflation while we have 30% inflation so how are prices in south cheaper? animal resources? you are currently killing each other for cows XD lol hahahhaha animal resources hahahaha.’your economic is the worst than ours’
      4.7 milion starving
      83% poverty
      80% inflation

      lol hahhah

      repondre message

    • 12 June 2012 17:27, by Corrector

      don’t know where you got your information from, sounds fabricated. Sudan sold 1.3 TONNES of gold since jan 2012, and we sell more cattle than Australia sells sheep, so how could the prices of meet be more in the north than in the south is beyond anyone to know, unless its a lie. S.Sudan is in an infinitely worst position than the north, that’s a matter of fact.

      repondre message

  • 12 June 2012 18:06, by Northern Sudanese

    why are you south sudanese commenting on sudans economic situation?

    80% inflation
    83% poverty
    4.7 milion starving people
    $4 bilion stolen dollars
    98% of gdp cut
    unable to afford food prices
    killing each other for no good reason
    citizens leaving border states
    no food, medicine, education roads ect
    tribal conflict
    upcoming war
    no development
    dying nation

    speaking about sudan economy?

    repondre message

  • 13 June 2012 16:39, by Bob Best

    Trading FOREX exchange currencies
    is the best protection
    for the money of individual-the account is
    not affected by inflation or costs.

    see-
    bestforexautomation.com/freeEA.html

    repondre message

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