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Price hikes as Sudanese Pound plunges

April 21 - 2016 NYALA
File photo
File photo

Transportation fares and prices have reportedly risen to unprecedented levels in Nyala, capital of South Darfur, the rest of Darfur, and Sudan in general. Merchants and analysts blame the sharp drop in the value of Sudanese Pound against the US Dollar.

Residents of Nyala told Radio Dabanga they were surprised at the hike in prices of basic consumer goods, as well as transportation fares, which occurred without any clear justification on Wednesday morning.

US Dollar rate

Traders in Nyala justified the sudden rise in commodity prices as because of an increase in the US Dollar price, and the levies imposed by local authorities on shops.

Prof Hamid El Tijani, an economist and professor at the American University in Cairo, predicts that the US Dollar price will continue to rise against the Sudanese Pound unless the government changes its policies and creates a political consensus.

In an interview with Radio Dabanga to be broadcast today, Prof El Tijani attributes the deterioration of the value of the Sudanese Pound against the US Dollar after the Dollar price hit SDG 14 [on the parallel market], to the lack of production in the country, wars, and low oil transit fees, in addition to the decline in remittances by expatriates.

He said “the government has made the production places theatres of war. These developments will lead to high rates of poverty and emigration among the workforce and professionals and, accordingly turn of all work in the country into marginal activities.”

He warns that this will exacerbate the current economic deflation and recession.

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