Bank of Sudan pumps dollars into commercial banks

07/02/2016 11:25 KHARTOUM

The Central Bank of Sudan announced last week that it will provide 13 commercial banks in the country with $117 million.
The US Dollar rate on the black market is steadily increasing for years owing to the scarcity of the currency. In September 2010, the Central Bank of Sudan announced that the lack of hard currency was becoming acute. The secession of South Sudan in July 2011, with which Sudan lost two-thirds of its oil revenues, an important source of hard currency, exacerbated the crisis.
The chairman of the Sudanese Employers Union, Saoud El Bireir, described the step as “positive”. He told the press in Khartoum last week day that the Central Bank’s pumping of hard currencies into commercial banks, and the raising of their ceilings “will reflect positively on import demands, and the exchange rate of the Sudanese Pound”.
The pro-government electronic English newspaper Sudan Vision reported yesterday that El Bireir hailed the Central Bank for settling “large amounts of its commitments abroad”.
He said that the new steps will reflect positively on the economy, and noted that the banks have already started to issue letters of credit for importation. “The measures will enhance the national economy and consolidate the confidence in the banks. They will also reflect positively on the Sudanese Pound’s exchange rate against the Dollar on the domestic market.”

The Central Bank of Sudan announced last week that it will provide 13 commercial banks in the country with $117 million.

The chairman of the Sudanese Employers Union, Saoud El Bireir, described the step as “positive”. He told the press in Khartoum last week day that the Central Bank's pumping of hard currencies into commercial banks, and the raising of their ceilings “will reflect positively on import demands, and the exchange rate of the Sudanese Pound”.

The pro-government electronic English newspaper Sudan Vision reported yesterday that El Bireir hailed the Central Bank for settling “large amounts of its commitments abroad”.

He said that the new steps will reflect positively on the economy, and noted that the banks have already started to issue letters of credit for importation. “The measures will enhance the national economy and consolidate the confidence in the banks. They will also reflect positively on the Sudanese Pound's exchange rate against the Dollar on the domestic market.”

The US Dollar rate on the black market is steadily increasing for years owing to the scarcity of the currency. In September 2010, the Central Bank of Sudan announced that the lack of hard currency was becoming acute. The secession of South Sudan in July 2011, with which Sudan lost two-thirds of its oil revenues, an important source of hard currency, exacerbated the crisis.

According to the Central Bank of Sudan end 2014, the deficit in the country's trade balance had grown to $4.86 billion. The export revenues reached $4.35 billion, while the imports amounted to $9.21 billion.

In December last year, the Arab Monetary Fund (AMF) agreed to lend the Sudanese government $166 million. According to the AMF the loan will contribute to the financing of Sudan's balance of payments deficit, and support the economic reform programme covering the years 2016 and 2017. The loan raises the number of loans the AMF granted to Sudan to 14, with a total amount of $400 million.