Sudanese Pound continues plunge against US Dollar despite unified currency rate

The US Dollar is currently trading at SDG570 on the parallel market in Khartoum, up from SDG560 on Monday, as the Sudanese Pound continues to fall against major currencies. Economist Hasan Bashir said in an interview with Sudan Today on Radio Dabanga that the full liberalisation of the exchange rate in the absence of enough foreign currency reserves will lead to the continued rise in the price of the greenback in the parallel market

The official price of the Dollar in banks jumped on Tuesday to SDG530, an increase of 19 per cent, while the Central Bank of Sudan stopped issuing the indicative price, after it announced the unification of the Sudanese Pound exchange rate to allow for the determination of currency exchange rates without interference from the Central Bank.

Economist Hasan Bashir said in an interview with Sudan Today in Radio Dabanga that the full liberalisation of the exchange rate under the absence of enough foreign exchange reserve will lead to the continued rise in foreign exchange rates in the parallel market and explained that banks will remain in a continuous state of chasing the parallel market rates. He said the resolution could be addressed part of short-term implications but was not a sustainable solution.

Bashir predicted dark economic scenarios if the political crisis and non-normalisation with donors and international institutions and explained that the economic situation will continue to deteriorate. He said the aftermath of the October 25 military coup is exacerbating the economic crisis and cut off the road to economic growth in Sudan this year, that already took a full year to start to recover take off the Sudanese economy.

The security solutions that the authorities decided to use against the parallel market currency traders as a workout and will not have any impact, and said decisions would not affect the senior currency traders. The decisions of the Gold Exchange are impeded by the beneficiaries of smuggling, Bashir says.