Crackdown on street forex traders as Sudan Pound plunges

The Sudanese Pound (SDG) has fallen to record low levels against the US Dollar. The latest reports from Khartoum indicate that the Dollar is trading at SDG 85 for cheques, and SDG 75 for cash.

The security authorities have launched an intensive campaign against informal currency traders and reportedly arrested an unspecified  number of them, which has resulted in the near cessation of black-market activities.

Bankers and economists have conditioned the success of the exchange rate mechanism in halting the rise in the Dollar prices in the parallel market with presence of real foreign exchange resources covering the needs of the market.

On Thursday, a group of traders in the Sudanese markets stopped buying and selling and major food companies temporarily suspended their production, following the rise in foreign exchange rates against the Pound for the fear of financial losses amid the deteriorated economic situation.

On Thursday, the leadership bureau of the ruling National Congress Party instructed in a meeting chaired by President Omar Al Bashir speeding up taking measures to provide fuel, bread and control of exchange rate.

The meeting approved the government’s plan to address the liquidity crisis and provide cash.

Note: As effective foreign exchange rates can vary widely in Sudan, Radio Dabanga bases all SDG currency conversions on the Market Makerrs Mechanism-deternined daily US Dollar rate quoted by the Central Bank of Sudan (CBoS).