January 15, 2017 (KHARTOUM) - The U.S. dollar price has swung lower on the black market in the Sudanese capital, Khartoum following the U.S. decision to ease the economic sanctions imposed on the east African nations for two decades.
- A worker counts US dollar bills inside a money changer in the Sudanese capital, Khartoum (Photo: Reuters)
On Friday, the outgoing U.S. President Barack Obama signed an executive order to ease sanctions against Khartoum enabling trade and investment transactions to resume with Sudan.
Last 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.
Following the CBoS decision, the dollar price went up and settled at 19,4 pounds on the black market.
Traders in Khartoum on Sunday told Sudan Tribune on the condition of anonymity that the dollar price ranged from 14 to 17 Sudanese pounds (SDG), saying they refrained from buying the dollar in fear of a further decline in its price.
According to the traders, the U.S. decision caused uncertainty and the dollar price fluctuated from 14 to 17 pounds.
It is noteworthy that Sudan’s Finance Minister Badr al-Din Mahmoud on Saturday announced they are developing a comprehensive plan to review the foreign exchange policy in light of Washington’s decision to ease sanctions.
Sudan has been under American economic and trade sanctions since 1997 for its alleged connection to terror networks and remains on the U.S. list of state sponsors of terror. The first batch of sanctions restricts U.S. trade and investment with Sudan and block government’s assets of the Sudanese government.
Additional sanctions in relations with the conflict in Darfur region were introduced by two Executive Orders in 2006.