Finance Minister Mohamed Osman al-Rikabi denied intentions to float the exchange rate of the Sudanese pound.
In press statements at the National Assembly Monday, al-Rikabi said the government has no intention to float the price of the Sudanese pound, describing any reports in this regard as mere “rumours”.
He pointed out that his ministry would take a number of measures to strengthen the price of the pound, stressing the value of the pound would stabilize in the few coming days.
In November 2016, the Central Bank of Sudan (CBoS) introduced an incentive policy, increasing the exchange rate in commercial banks by 131%.
As a result, the U.S. dollar exchange rate went up in banks to 15.8 SDG from the official rate of 6.5 SDG.
However, this measure didn’t halt the rise of the dollar against the pound which has reached 24.7 SDG in the black market.
A floating exchange rate is a regime where the currency price is set by the forex market based on supply and demand compared with other currencies.
This is in contrast to a fixed exchange rate, in which the government entirely or predominantly determines the rate.