Sudanese pound falls to record low against U.S. dollar

July 13, 2018 (KHARTOUM) – The Sudanese pound on Thursday has hit another historic low against the U.S. dollar on black market despite strict administrative and security measures put in place by the government since last November.

JPEG - 39.9 kb
The US dollar has continued to decline against the Sudanese pound following a deal reached between Juba and Khartoum (Getty)

A trader in Khartoum told Sudan Tribune that the purchase price of the U.S. dollar reached 42,50 Sudanese pounds while the selling price settled at 43,00 pounds.

He pointed out that the purchase price of the U.S. dollar that is being transferred into accounts abroad particularly in Dubai has reached 45,00 Sudanese pounds.

The same trader expected the price of the U.S. dollar to continue to increase during the next period, saying demand for the dollar would rise particularly as the pilgrimage season is approaching.

Following an unprecedented increase in dollar price, the Sudanese authorities in November 2017 introduced new measures allowing for10-year prison term for anyone caught trading on foreign currency outside the banking system or approved institutions.

In February, the dollar price hit an all-time high on the black market as the Sudanese pound (SDG) declined to 42,00 per dollar. However, the dollar price declined after the crackdown on the Forex traders and stood at 32,00 for several weeks.

The Sudanese pound has lost more than 100% of its value since South Sudan’s secession in 2011, pushing inflation rates to record levels given that the East African nation imports most of its food.

The most recent International Monetary Fund (IMF) report indicated that Sudan’s gross international reserves remained very low in 2017 ($1.1 billion, 1¾ months of imports)

(ST)