January 29, 2018 (KHARTOUM) - The Sudanese pound
on Monday has hit another historic low against the US dollar on the black market despite strict security measures put in place by the government since last November.
Although its Sudan operations suffered foreign exchange losses following the plunge in the value of the Sudanese pound
, the local currency has stabilized recently.
A man counts South Sudanese pound
banknotes in Juba (file).
There is little foreign trading in the Sudanese pound
but the black market rate is an important indicator of the mood of the business elite and of ordinary people wearied by years of economic crises, ethnic conflicts and wars.
Oil exports had been the main source for the public spending and foreign currency, which Sudan needs to support the Sudanese pound
and pay for food and other imports.
Inflation has more than doubled since the government effectively devalued the Sudanese pound
The secession has also disrupted the currency market, as people and businesses scrambled to buy dollars, pressuring the Sudanese pound
despite the central bank's pledge to provide banks with more dollars to meet rising hard currency demand.
It previously said it would take up to three months to replace the old Sudanese pound
, describing the currency move as "precautionary measure" following the southern plans.
South Sudan's new currency is being exchanged at a one-to-one rate with the existing Sudanese pound
December 13, 2017 (KHARTOUM) - The International Monetary Fund (IMF) has strongly advised Sudan to float the Sudanese pound
stressing it is critical for creating the necessary conditions for attracting investors and promoting economic development.
The Sudanese pound
has more than halved in value since South Sudan's secession in 2011 deprived Sudan of most oil production, the main source for dollars and state revenues.
The report showed the expected rise in the cost of the pilgrimage this year due to the devaluation of the Sudanese Pound
against the Dollar.