Sudanese Pound continues plunge against US Dollar

The value of the Sudanese Pound continued to fall against the US Dollar, with rates topping SDG 25 on the parallel market for the first time in history on Wednesday night. Economists expect the trend to continue.

On Wednesday the US Dollar continued its steady rise against the Sudanese Pound where it has amounted to about SDG 25 for the first time in the history of Sudan.

On Wednesday night, street traders in Khartoum were raising SDG 25 for a greenback, up from Tuesday’s purchase price of SDG 24.30 and SDG 24.60 for sale, compared to SDG 23 for purchase and SDG 23.30 pounds for sale just two days ago.

Traders in the parallel currency market in Khartoum told Radio Dabanga that the price of the Dollar has risen during the past two days after it had stabilised within the limit of SDG 22 for months.

They expected the Dollar to continue rising against the Pound.

Supply and demand

Economic expert Dr Sidgi Kabello told Radio Dabanga the increasing rise in the Dollar against the Pound can be attributed to the scarcity of supply of the Dollar and the increasing demand for it from importers and traders.

He told Dabanga in a previous bulletin that the price of the Dollar could be decreased only with caring for production and increase of exports.

Kabello predicted that the price of the Sudanese Pound against the Dollar will continue to fall if the government continues its economic policy, which he described as ‘destructive’.

Central Bank of Sudan

The Director of Preventive Control Department of the Central Bank of Sudan, Asma Kheiri, criticised using the exchange rate in the parallel market as a standard and said that illegal currency dealing is a crime that must be fought.

Kheiri: “That’s why Sudan is accused of corruption, and the financial policies have led to the destruction of monetary policy.”

Kheiri predicted a breakthrough in fiscal policy control and expected Sudan’s declassification from the list of countries with the most banking risk “after the implementation of the pillar of transparency”.

Imports threatened

Khartoum’s importers have threatened to close their companies in protest against the steady rise in the Dollar price.

They said they had to stop their business because of the Dollar’s rise, which they said hit SDG 25 on Wednesday night.

They appealed to the authorities to intervene to stop currency traders’ speculation on the value of the Dollar.