Economic expert expects fall of Sudanese Pound

Economic expert Sidgi Kaballo expects the US Dollar ​​exchange rate to rise to SDG600* by May unless the government takes urgent measures. Food insecurity will increase the coming months.

In an interview with Radio Dabanga, Dr Kaballo attributed the rapid fall of the Sudanese Pound in the past week to the formation of the new government and speculation by currency dealers. He called on the government to take urgent measures to reduce the demand for the Dollar, including preventing the import of luxury goods.

He further called for public companies to take over export operations. Livestock export must be “taken away from the monopoly of the military establishment”.

The prices of sugar, oil, milk, lentils and rice rose again on the streets. The price of a 50 kg sack of sugar rose from SDG12,800 to SDG13,500.

January’s inflation rate increased to 304.3 per cent compared to 269.3 per cent in December 2020.

The exchange rate of the Dollar against the Sudanese Pound rose again from the beginning of this week, after a significant decline following the formation of the government last week.

FEWS NET, the Famine Early Warning System Network of the US Agency for International Development (USAID), expects more food insecurity and shortages the coming months in most parts of Sudan.

* As effective foreign exchange rates can vary in Sudan, Radio Dabanga bases all SDG currency conversions on the daily middle US Dollar rate quoted by the Central Bank of Sudan (CBoS) = 55.1375 at time of posting.