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
Central Bank of Sudan (CBoS) ( Photo 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 2014 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


Appointment of Dr. Riek as FVP is welcome but...? 2016-02-13 13:18:16 By James Okuk “Geography has made us neighbors. History has made us friends. Economics has made us partners, and necessity has made us allies.” – President J.F. Kennedy. On Thursday February 11, (...)

Formation of “TGoNU” without Constitutional Amendment: Is it a right of necessity? 2016-02-09 20:30:29 By Mabor Maker Dhelbeny In its 55th Extra-ordinary Meeting, held on 30th – 31st January, 2016 in Addis Ababa, Ethiopia, the IGAD Council of Ministers in the communiqué on South Sudan: (1) (...)

Terrorism Tops African Summit Agenda: Lip service or strategic move? 2016-02-07 04:56:59 By Trayo A. Ali In Africa, terrorism is not only strategic threat to continent political security and destabilization, but more importantly it also constitutes fundamental challenge and eminent (...)


MORE






Latest Press Releases


Civil society group decries delay of S. Sudan transitional gov’t 2016-01-29 18:08:53 South Sudan Civil Society Alliance Date: 29.1.2016 For the immediate Release Press Release Following the passing of deadline of the formation of Transitional Government of National Unity in the (...)

Africa: Strengthen steps to end child marriage 2015-12-14 08:04:41 December 10, 2015 African governments should coordinate action to improve laws, education, health care, and public awareness to end the scourge of child marriage, Human Rights Watch said today (...)

Professor Akolda, it is too early for you to go 2015-12-06 06:36:15 I learnt from social media of the untimely departure of Professor Akolda Maan Tier on the 30th Nov 2015, whom I knew and admired, as one of the great, committed sons of both Sudans, who dedicated (...)


MORE

Copyright © 2003-2016 SudanTribune - All rights reserved.