Home | News    Saturday 12 November 2016

Sudanese pound falls sharply against U.S. dollar, despite partial floating

separation
increase
decrease
separation
separation

November 10, 2016 (KHARTOUM) - The Sudanese pound (SDG) on Friday has hit another historic low against the U.S. dollar on the black market since Central Bank of Sudan (CBoS) has partially floated the exchange rate, last week.

JPEG - 23.4 kb
A worker counts US dollar bills inside a money changer in the Sudanese capital, Khartoum (Photo: Reuters)

Last week CBoS introduced an incentive policy and increased the exchange rate in commercial banks and exchanges by 131%. As a result, the US dollar exchange rate went up in banks to 15.8 SDG in comparison with to the official rate of 6.5 SDG.

The exchange rate of the dollar went up to 17.6 Sudanese pounds in the black market on Friday while it was at 15.6 SDG last week when the central bank introduced new policy.

On Friday, black market traders told Sudan Tribune that the new incentive policy did not affect the market despite increasing the official exchange rate to 15.95 SDG which was similar to the back market prices.

CBoS expected that the incentive policy would help attracting Sudanese expatriates to sell their savings to the official banking institutions.

“Last week dollar traders stopped selling completely but continued buying,” said Ahmed a black market trader, adding that black market traders have waited to understand the impact of the new CBoS policy.

The black market trader noted that the banks were not able to attract expatriates’ remittances during the whole week, as the exchange rate in back market went up.

“We expect that Sudanese pound to continue dropping against foreign currencies because the central bank has no sufficient reserves of hard currency to control the exchange rate,” the trader said.

He added that expatriates have no trust in the CBoS and prefer to transfer their money through the black market which offers interesting rates.

Las week, the Ministry of Finance has expected that the new CBoS policy would help attracting $ 4 billion of the expatriates’ financial transactions, which is mainly used to be channeled through black market.

Black market traders expected that US exchange rate might reach 20 SDG within two weeks.

Security authorities usually monitor exchange rate in black market when it goes up and arrest traders for some time before to release them.

In the past, the CBoS governor called to try the black market traders.

Last February, the minister of finance pointed that dollar exchange rate in black market must not exceed 7 SDG, saying the hike is caused by traders’ speculations.

The Sudanese pound dropped down after South Sudan seceded in 2011, as the north Sudan lost three-quarters of oil output, the main source of foreign currency used to support the Sudanese pound and to pay for food and other imports.

(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.
  • 12 November 2016 09:55, by Uglami

    This economic crisis came as a result of, Government is using 3/4 of her resources for military support

    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


Wedding in Juba - How can you tell if a bridegroom works for Nilepet? 2017-02-24 05:25:41 By Deng Kiir Akok The Nile Petroleum Corporation is a national Oil and Gas Corporation, which engages in oil exploration, production and marketing. Famous for its abbreviation Nilepet has been a (...)

Bashir’s congratulation for Trump remains double-edged sword 2017-02-21 08:47:41 By Mahmoud A. Suleiman This is a note to the readers of this article about my use of the phrase double-edged sword. It means that Omar al-Bashir’s Speedy congratulation offer to Donald Trump (...)

South Sudan: Why ’NO’ for peace and ’YES’ for war 2017-02-20 20:45:12 By Tor Madira Machier The region and the International community has been on a campaign in a bid to end the civil war in South Sudan right after its inception in December 2013, yet the very (...)


MORE






Latest Press Releases


Militias of Bashir’s Regime and the Proxy War (1) 2017-02-08 21:49:09 Sudan Democracy First Group Militias of Bashir’s Regime and the Proxy War (1) War in the Blue Nile: Militias in the hunt of refugees and displaced population Introduction Throughout its rule, (...)

More refugees flee to Uganda than across Mediterranean 2017-01-25 09:15:39 January 25, 2017 Uganda welcomed more refugees last year than the total number of refugees and migrants crossing the Mediterranean into Europe. “Europe should learn from the way Uganda and other (...)

Carter Center welcomes new regulations on humanitarian affairs 2017-01-12 07:53:16 The Carter Center ATLANTA, Januarg 11, 2017 – The Carter Center welcomes the recent regulations issued by the government of Sudan aimed at facilitating humanitarian relief throughout the country (...)


MORE

Copyright © 2003-2017 SudanTribune - All rights reserved.