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Sudanese pound falls to record low against dollar on black market

Reuters , Wednesday 24 Aug 2016
Sudan
File photo: The Sudanese pound has hit a new low against the US dollar on the black market because of a shortage of foreign currency in the country's markets, traders said (AFP Photo)
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The Sudanese pound dropped to a record low on Wednesday, according to ‎currency ‎traders, as the official banking system struggles to supply dollars needed to buy ‎imports.‎

The cost of a dollar on the parallel market rose to 16 Sudanese pounds from 15.1 ‎pounds ‎last month, traders said. The government has kept the official rate at 6.4 pounds to ‎the ‎dollar since August 2015.‎

‎"There is a big dollar shortage with an increase in demand from companies that import," ‎a ‎parallel market trader said, and Sudanese banks are not able to transfer money because ‎of ‎United States sanctions on Sudan.‎

‎"There is a sort of panic; people are buying dollars at any price and exchanging their ‎savings ‎from pounds to dollars .. given the scarcity of the dollar, this way, the dollar price ‎will ‎continue to rise," another black market trader said.‎

Prices soared in Sudan after South Sudan seceded in 2011, taking with it three-quarters ‎of ‎the country's oil output, the main source of foreign currency used to support the ‎Sudanese ‎pound and to pay for food and other imports.‎

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