US Dollar in Free-fall on Sudan Black Market

SMC-

The US dollar price continues to plummet on the black market in Sudan following the US decision to ease the economic sanctions imposed on the resource-rich nation as traders stop trading and expect a further decline.

Outgoing US President Barack Obama signed an executive order to ease sanctions against Khartoum enabling trade and investment transactions to resume with Sudan.

Last November, Central Bank of Sudan (CBoS) introduced an incentive policy, increasing the exchange rate in commercial banks by 131 percent. As a result, the U.S. dollar exchange rate went up in banks to 15.8 Sudanese pounds (SDG) from the official rate of 6.5 SDG. Following the CBoS decision, the dollar price increased and settled at 19,4 pounds on the black market.

Traders in Khartoum said the U.S. decision caused uncertainty and the dollar price fluctuated from 14 SDG to 17 SDG, saying they refrained from buying the dollar expecting of a further decline.

Sudan’s Finance Ministry is developing a comprehensive plan to review the foreign exchange policy in light of Washington’s decision to ease sanctions.