Home | News    Monday 17 December 2012

Sudan central bank says no fix for sliding currency without addressing trade gap

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December 16, 2012 (KHARTOUM) – The governor of Sudan’s central bank Mohamed Kheir al-Zubair acknowledged that the country will not be able to reverse the deterioration in the value of currency without fixing the underlying economic situation causing it.

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Mohamed Khair Al-Zubair Ahmed, governor of Sudan’s central bank (Reuters)

In a briefing before the Sudanese national assembly, Al-Zubeir said that the gap between imports and exports will continue to create pressures on the exchange rate.

"Without plugging [the trade gap] the exchange rate will not stabilize," the governor said.

The Sudanese pound has plunged to its lowest levels since a new currency was introduced last year and is now trading at 6.9 to the dollar in the black market. This is in sharp contrast to the official exchange rate of 4.4.

Several announcements by the central bank this year of Forex deposits from abroad have done little to stop the slide.

The secession of the oil-rich South Sudan last year has denied Sudan billions in revenue and hard currency making the central bank virtually unable to intervene and support the pound. Individuals and business alike complain that they cannot obtain enough foreign currency through official channels forcing them to head to the black market.

The government resorted to measures such as restricting the sale of hard currency and banning certain imports to preserve the Forex reserves.

But analysts and economic experts argue that the only long standing solution to the currency crisis is to boost exports in order to at least pay for imports.

Sudan has been trying to increase its production of gold and agricultural products, as well as the output from its remaining oilfields, to help offset the loss of southern oil. Sudan currently produces about 115,000 barrels of oil per day.

Al-Zubeir revealed that gold exports which reached $2 billion have enabled the government to pay for imports of basic commodities such as wheat, medicine and gasoline as well as defense and security.

He projected that the newly inaugurated gold refinery could export $5 billion worth of gold once it starts working at full capacity.

Sudan had expected to collect some revenue from South Sudan’s oil because the new nation is landlocked and was supposed to pay Khartoum to export crude through pipelines in the north. But Sudan insists that security issues must be resolved first before oil can start flowing again.

(ST)

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  • 17 December 2012 08:54, by master

    Taha & Omer
    what are you waiting for ?
    Go any where & let us alone

    repondre message

    • 17 December 2012 09:20, by South South

      Penguins, your poor country is falling apart ecomocially, what a sweet thing to see.

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    • 17 December 2012 13:29, by P.K.M

      Where do you want them to go? You all don’t want to die together with your economy?

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      • 17 December 2012 13:34, by P.K.M

        What’s going on here? Creating chaos and killing intellectuals in South Sudan not helping your economy yet? How sad? Ooh, poor Sudan, what can we do about you?

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  • 17 December 2012 10:06, by manyang mawech

    Master,
    kick them out on yr face that could be good solution

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  • 17 December 2012 14:29, by nostalgia for 1 sudan

    can u lend us some money wealthy south sudan?we r dying of food scarcity and we want to export our oil but we have no sea terminals!!!we r landlocked newborn country!we r suffering from tribalism,famine,illiteracy and we r lacking infrastructures like roads,electricity,schools and hospitals,yet we have very long tongues and very small brains and malodorous body secretions.we r insignificant insect

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    • 17 December 2012 14:40, by P.K.M

      Hey, you forgot? You have already asked for $ 3 billion and that proved that we are wealthy. Your sarcasm is pointless! Second of all, Sudan is not the only way to international market. If we can pay you to transit our oil through Sudan then why don’t we pay another country to transit our oil through? The oil will build our infrastructures just worry about your own economy!

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  • 17 December 2012 15:56, by nostalgia for 1 sudan

    poor kind of man(p.k.m)
    don’t worry about our economy..we have just amputated a rot organ f our body,we need some time to recover and the amputated organ is going to be buried soon and disintegrates by its own.what favor did oil do for Nigeria? Africans can’t make any difference with natural recources.

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    • 17 December 2012 17:49, by P.K.M

      Really! Rot body you amputate that you still need $ 3 billion from it to jumpstart the same body? Are you sure you’re not the same Sudan who need transit fees and $ 3 billion dollars in assistance from South Sudan? Time will tell who is really rotting! It’s been less than a year without South Sudan oil but you already felt the heat. Wait 10 more years!

      repondre message

  • 17 December 2012 16:03, by nostalgia for 1 sudan
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