Home | News    Monday 13 January 2014

Sudan says it’s in “comfortable” position to control exchange rate

separation
increase
decrease
separation
separation

January 12, 2014 (KHARTOUM) – Sudan is now in a better position to support its beleaguered currency in light of new developments, according to central bank sources.

JPEG - 12.8 kb
An official leaves after a news conference presenting Sudan’s new currency at the Central Bank of Sudan headquarters in Khartoum on 16 July 2011 (Reuters)

The sources told the pro-government al-Rayaam newspaper that they started receiving oil transit fees from Juba since three weeks ago totaling millions of dollars.

They stressed that the recent events in South Sudan did not interrupt the transfer of dues owed to Khartoum and added that oil production increases helped boost service fees.

The sources underscored that this helped the central bank build its Forex reserves and provide hard currency needed to import wheat, gasoline and gas as well as conduct maintenance on the oil refinery so it can work at maximum capacity.

Khartoum receives a fixed fee from landlocked South Sudan for every barrel of oil exported through its pipelines which helps it cover a portion of its budget hole and more importantly provides a stable source of hard currency needed to import food.

Last week, the US dollar was trading for 8.18 pounds compared to 7.30 prior to the outbreak of violence last month in South Sudan.

The official exchange rate is around 5.7 pounds to the dollar.

This was the second time since last June that the US dollar’s exchange rate in the parallel market surpasses eight pounds. That was when president Omer Hassan al-Bashir announced that his government will not allow South Sudan to use its facilities to export oil to the international markets.

Oil production in South Sudan was partially disrupted after forces loyal to former vice president Riek Machar managed to take control of Unity state which contains some wells which are believed to have been producing around 45,000 barrels per day (bpd).

The Sudanese oil Minister Makkawi Mohammed Awad affirmed this week that flow of crude from Adar Yeil’s oil field in Upper Nile state is normal adding that production there increased from 165,000 barrels per day (bpd) to 200,000.

But on Wednesday, Reuters quoted oil industry sources as saying that South Sudan’s exports of heavy sweet Dar Blend will drop to 4.6 million barrels, or about 148,000 bpd, in January in a revised loading programme, one source said, down about 21 percent from 187,000 bpd originally planned.

Dar Blend is produced in the Upper Nile state, in Blocks 3 and 7 that are operated by the Petrodar Operating Company.

Two of the seven cargoes that had been scheduled for loading in January have been deferred to February, he told Reuters.

Exports of Nile Blend, another Sudanese crude, have also dropped after production was shut in South Sudan’s Unity state last month. The grade is also produced in Sudan where output is stable.

In a revised loading programme seen by Reuters, two Nile Blend cargoes will load in January, down from three originally, the sources said. These include a cargo that was scheduled to load in December.

(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 January 18:11, by thomas

    I hope the Governor of the Bank of South Sudan is paying attention. Notice how they make their decisions independently. You better not be coordinating with them like the last time you tried to devalue our currency, it was right after Khartoum devalued theirs. Even worse, we later found the IMF was telling you to do it (pushing the burden of repaying loans onto the citizens). Think for yourselves!

    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


Who was behind the killing of civilians in Bor? 2014-04-22 06:50:43 By Peter Gai Manyuon "A nation that continues year after year to spend more money on military defense than on programs of social uplift is approaching spiritual death", from unknown author. (...)

Embracing victimhood to celebrate victimisation 2014-04-22 06:28:12 By Juliana Bol April 21, 2014 - It was a bit disturbing to hear news of our citizens in the IDP camps (where they are seeking protection and shelter) celebrating the recapture of Bentiu -in (...)

South Sudan: Revenge Killings is not the basis for building a modern nation 2014-04-21 05:39:31 By Steve Paterno April 20, 2014 - The theme of this article develops as a result of my extensive research and writings on a culture of revenge killings among South Sudanese communities, (...)


MORE




VIDEOS



Latest Press Releases


Sudan: No justice for protest killings 2014-04-23 21:06:10 Human Rights WatchRelease Detainees and Punish Abusive Forces (Nairobi, April 21, 2014) – Sudanese authorities have failed to provide justice for scores of civilians killed in anti-government (...)

SDFG mourn the loss of a Sudanese activist 2014-04-20 09:02:39 The Sudan Democracy First Group mourns the loss of Osman Hummaida, a towering figure of the human rights movement in Sudan, and a tireless campaigner for democracy and peace in the country. Osman (...)

UNICEF supports emergency response for children in Sudan with 89 tons of life-saving supplies 2014-04-19 09:47:06 Khartoum, 18 April 2014 --- Today in Khartoum airport, UNICEF received 89 tons of life-saving supplies to support the humanitarian response to children affected by emergencies in various hot (...)


MORE

Copyright © 2003-2014 SudanTribune - All rights reserved.