US Dollar rises against Sudanese Pound again
The Dollar price in Sudan rose again to 43 Pounds in the parallel market on Thursday. Currency traders attributed the rise to the increase of the demand and the limited supply of the Dollar.
The US Dollar also rose to 46 Sudan Pounds for currency forward sale, which locks in the exchange rate for the sale of the currency on a future date.
Economic analyst Abdelhadi Ibrahim told Radio Dabanga that the rise is also caused by the return of expatriates after the holiday of Eid El Adha. “In addition there have been rumours that the government has promoted to pump in more foreign currencies from South Sudan’s oil revenues and the African-China summit.”
The spike in the rate follows a short drop. In July, however, the US Dollar exchange rate nearly hit 50 Sudan Pounds.
In his speech to the nation on Monday, President Omar Al Bashir introduced a “comprehensive political and economic reforms” programme to solve the current crisis in the country. New emergency measures aim to stimulate production, increase exports, and control imports.
Economic experts including Dr Hasan Bashir, Professor of Economics at El Nilein University in Khartoum doubt the new measures.
“Reducing the number of ministeries is a good step. The percentage of government spending in Sudan is the largest in the world, compared to the Gross Domestic Product,” he told Radio Dabanga on Tuesday. “Yet, the main problems of the Sudanese economy, the collapse of infrastructure, extremely poor services, and a monopolised private sector, need much more interventions.”
Sudan is suffering from a chronic lack of hard currency and cash, while the exports are dwindling. High inflation figures caused a severe drop in purchasing power among the Sudanese since early January, after the government implemented major austerity measures. The country is also witnessing recurrent fuel and wheat shortages. Several economists have warned for an economic collapse.
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