The dollar rose against the Sudanese pound on Wednesday, during the trading of the parallel (black) market, while settling with banks.
The price of the U.S. dollar in Sudan on the black market was about 400 pounds compared to 388 pounds, yesterday, according to local media.
The Central Bank of Sudan put the benchmark price for the US dollar on the third day of the float at 376 pounds for purchase and 377.88 for sale.
The central bank of Sudan’s dollar price was 55 pounds for purchase and 55.27 pounds for sale, just before the float.
Sudan has been in deep economic crisis since a transitional government came to power in mid-2019 after a popular uprising.
Annual inflation in The Sudan jumped to its highest level in decades, as living conditions deteriorated in the country, which is in difficult economic conditions.
The Central Bank of Sudan announced on Sunday that the exchange rate of its local currency, the pound (partial float) against the dollar and foreign exchange, will be consolidated from Sunday, in an effort to eliminate economic and monetary imbalances.
“The central bank will have full powers to intervene at exchange rates if it exceeds a ceiling set by it,” the resolution said.
Euro and Sterling
The average euro price of some banks operating in the country was 453.34 pounds for purchase and 454.58 pounds for sale, following the decision to float the local currency.
The pound at the Central Bank of Sudan was worth 520.8 pounds to buy and 523.53 pounds for sale, compared to 527 pounds on the black market.
The central bank said in its Sunday circular that it will set a benchmark rate for the U.S. dollar on a daily basis to which atms and commercial banks are committed to buying and selling.
Standardization of exchange rate
In its statement, the Central Bank also said that the transitional government had settled on adopting a package of policies and measures aimed at reforming and consolidating the exchange rate system by adopting a flexible exchange rate system.
The Central Bank justified the decision by continuing to suffer from structural imbalances in the domestic economy, including internal imbalances (the high state budget deficit) and the external imbalance (the high balance of payments deficit).
The consolidation of the official and black market prices plays a central role in the plan and any indication that the parallel market, used by most companies and the general Sudanese, continues to capture the lion’s share of hard currency trade, could undermine policy.
Officials said the black market was engaged in more than 90 percent of transactions. Trade intensified when Sudan lost its main source of income in dollars after the oil-rich south seceded in 2011.