November 21, 2016 (KHARTOUM) - The Sudanese pound fell to a record low on Monday, said currency traders on Monday.
- U.S. dollar notes (Reuters/Athit Perawongmetha Photo)
A trader in Khartoum told Sudan Tribune that the purchase price of the U.S. dollar reached 18,00 Sudanese pounds (SDG) while the selling price settled at 18,2 in the black market.
Earlier in November, Central Bank of Sudan (CBoS) introduced an incentive policy, increasing the exchange rate in commercial banks by 131%. As a result, the U.S. dollar exchange rate went up in banks to 15.8 SDG from the official rate of 6.5 SDG.
However this measure didn’t curb the rise of the dollar against the pound in the black market.
Black market traders last week expected that the pound would continue to drop against the dollar. They pointed to the increasing demand while the supply remains very limited.
Sudanese authorities regularly carry out arrest campaign against currency dealers in the black market following the significant increase of the dollar price five years ago after the secession of South Sudan.
Governor of the CBoS had earlier said the currency dealers must be charged with high treason, pointing the rise of the dollar in the black market “unjustified” and a result of “speculation”.
Sudan’s economy was hit hard since the southern part of the country declared independence in July 2011, taking with it about 75% of the country’s oil output.