Home | News    Thursday 13 December 2012

No end in sight to Sudan’s currency woes

separation
increase
decrease
separation
separation

December 12, 2012 (KHARTOUM) – The Sudanese pound continued sliding further against the U.S. dollar as traders in the black market saw no signs that the persistent shortage in foreign currency will ease anytime soon.

JPEG - 51 kb
FILE - A Sudanese man shows off the new currency in front of Central Bank of Sudan, in the capital Khartoum on August 27, 2011, several weeks after Sudan launched the new Sudanese pound (ASHRAF SHAZLY/AFP/Getty Images)

A deal signed between Sudan and South Sudan last September that would give Khartoum a cut of every oil barrel exported through the north’ s pipelines, is now facing hurdles over security prerequisites that the Sudanese government insists must be concluded first.

South Sudan was scheduled to resume oil production on Nov. 15 with the first exports to hit markets by January. It was hoped that the restart would provide Sudan with a stable source of hard currency it desperately needs since oil-rich South Sudan seceded last year taking with it 75% of the country’s 450,000-barrel-per-day output.

Sudanese authorities were faced with the dilemma of providing hard currency needed for paying food imports or supporting the local currency against other currencies in a flourishing black market.

The new Sudanese pound rolled out in July of last year was initially set at an official exchange rate of 2.7 to the dollar before the government devalued it to 4.4.

Today the dollar reached 6.8 pounds in the black market compared with 6.5 earlier this month. Other currencies such as the widely traded Saudi Riyal also traded higher against the pound.

The Central Bank now appears virtually helpless in containing the deteriorating exchange rate given its low level of foreign exchange reserves it holds.

Sudan has been seeking cash infusions from Arab countries but was met with little success. A series of announcements made this year including one last November by the central bank that it has received "large" Forex deposits from abroad have done little to impact the exchange rate.

Some observers accuse the government of deliberately feeding false news on Forex receipts in a bid to scare the black market into selling its Forex holdings to ease pressure on the local currency.

Last May a senior CBoS official told Sudan Tribune that he had no knowledge of a government disclosure that a cash transfer was made to Khartoum by a neighboring country.

(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.
  • 13 December 2012 07:16, by South Dengjok

    Dear Me,
    u will nebba nebba stop crying until u implement the Addis ababa Talk for exporting oil according 2 agreed charge,Useless Arab that nebba think a head for a problem,know only the spying,u will be destroy politically and globally until u regret from Africa cuze u r from Asia and we know that u are all terrorists supporter in the world and Africa ,but u will smell it and dollar will fuck u

    repondre message

  • 13 December 2012 07:49, by Jalaby

    To Sudantribune,
    You proved to me that I’m 100% correct about what I just said that tribune is so fast in posting negative news about Sudan and blocking negative news about south Sudan!
    Simple question,why you omitted this news about south Sudan jumping inflation from your english version?!

    repondre message

  • 13 December 2012 10:14, by South Dengjok

    Dear Jalaba
    we are nat defending our negative parts but we ain,t got no negative that we will nat be able 2 solve cuze we r nat blink got no plan and frame work work on the challenges dat facing us,we r nat like u peple who just want to depend on other like parasite,if there was no S.Sudan and her resources ,where could u benefit from? useless!,how long r u gonna depend & continuous looting ours.

    repondre message

  • 13 December 2012 11:31, by Kenyang

    They can lie to their teeth but those prosperous days are long gone with South Sudan oil. North Sudan has nothing beneficial to offer to South Sudan. All needed for young gov’t in Juba is to produce an alternative routine for its oil thru East Africa....

    repondre message

  • 13 December 2012 16:15, by panchol

    jalaby.
    please try to pay a visit to South Sudan or give a phone call to your inlaw or cousins they will tell you the rate exchange in hard currency.1$=3.9SSP the same as when we were one. sometimes goes down to 2.8SSP against 1dollar.

    repondre message

Comment on this article


 
 

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


Sudan Tribune

Promote your Page too

Latest Comments & Analysis


Al-Bashir’s decree fell short of Sudan’s demands 2014-04-17 09:57:38 By Mahmoud A. Suleiman Ampril 16, 2014 - This article comes against the backdrop of the Decree number 158 of 2014 passed by the National Congress Party (NCP) president Marshal Omer Hassan Ahmed (...)

Why hiring a lawyer if you can buy a judge 2014-04-17 09:11:43 By Dong Samuel Luak April 16, 2014 - Many people in South Sudan are asking, how long did it take President Salva Kiir to plan all this tragedy befalling our young country now? Recruitment, (...)

Abyei: Peace cannot be achieved through partial solutions 2014-04-16 06:23:14 By Maiwen Dot Phoet April 15, 2014 - Over the past month, reports received from sources on the ground in Abyei confirm the withdrawal of soldiers affiliated with South Sudan’s army and police (...)


MORE




VIDEOS



Latest Press Releases


Letter to the South Sudanese government on the ratification of the African Charter 2014-04-16 06:24:18 Letter to the Government of South Sudan on the ratification of the African Charter H.E. Salva Kiir Mayardit President of the Republic of South Sudan Juba, South Sudan CC: Dr. Barnaba Benjamin (...)

In Sudan, at least 26,000 primary school children risk repeating an entire school year 2014-03-21 08:42:00 UNICEF SUDAN PRESS RELEASE In Sudan, at least 26,000 primary school children risk repeating an entire school year Khartoum, 20 March 2014 --- Primary school-aged children in Sudan are in (...)

Civil society groups call on AUPSC to support holistic peace in Sudan 2014-03-11 07:22:46 An Open Letter from Sudanese Civil Society Addressing the Meeting of the African Union Peace and Security Council (PSC) on the Humanitarian and Political Crises in Sudan H.E. President Thabo (...)


MORE

Copyright © 2003-2014 SudanTribune - All rights reserved.