The Auction Supervisory Committee endorsed the cancellation and called for punitive measures against violation of the Bank of South Sudan foreign exchange rules and procedures. South Sudan has been auctioning hard currency into the market as a short-term measure to curb the depreciation of the pounds that sends prices skyrocketing.Įarly in April, the Central Bank announced the auctioning of 5 million dollars, only to cancel it later, citing irregularities in the market. In a press statement, the Bank blames the depreciation of the pound on the war in Sudan and the hiking of interest rates by the US Federal Reserve. Last week, the Central Bank raised concerns about Forex market volatility and further depreciation of the South Sudanese currency against the dollar. Part 1 Africa SOUTH AFRICA SOUTHERN RHODESIA SUDAN Status of Foreign Loans and Other Credits from United States Government Agencies, as of December 31. dollar in the Forex market is 970 South Sudanese pounds as of Thursday.īut in the Central Bank, the cost of buying one US dollar is 938 pounds while the selling price is 910 pounds. The South Sudanese pound has depreciated to a record low against the United States dollar – leaving exchange rate close to the one-thousand benchmark. The weakened pound has contributed to soaring prices in the import-dependent country, with inflation at 33.08 percent year-on-year in October.A 100 United States dollar note. This may create problems in the short term but over the long term it will achieve price stability and bring resources back to the banks,” said Amin Abbas, spokesman of the Federation of Sudanese Businessmen. The dollar’s role as the primary reserve currency for the global economy allows the United States to borrow money more easily and impose painful financial sanctions. “The root solution is to float the curency and leave the exchange rate to market forces. Some businessmen said Sudan has little choice but to float its battered currency, a move they said would close the gap between the official and unofficial currency rates and bring dollars back into the formal banking system. The United Arab Emirates will build a new Red Sea port in Sudan as part of a 6 billion investment package, DAL group chairman Osama Daoud Abdellatif, a partner in the deal, told Reuters. we will return to selling once the exchange rate is relatively stable,” said the manager of a company that imports agricultural equipment. “We have stopped selling since last Thursday. Some businesses have halted operations since last week because of uncertainty over the exchange rate. One day after the measures the currency strengthened to 23 pounds to the dollar from 24, currency traders said. In a bid to stop the currency’s freefall the government on Monday announced emergency measures, placing restrictions on the import of luxury goods, capping currency transfers, and announcing legal penalties for black market dollar trading. The central bank holds the official exchange rate at 6.7 pounds to the dollar, but the rate is largely only accessible to importers of essential goods like wheat and fuel, creating major demand for black market dollars. General prosecutor’s office said in a statement on Monday they would start controlling the black market and charging traders with financing terrorism, money-laundering and destroying the economy. there are no dollars in the banks and the price there is not real so people are going to return to us,” one black market trader said. but we will probably return to work next week. Security forces are carrying out intensive campaigns. “We stopped working out of fear of being arrested. Traders were largely absent from posts they usually occupy outside banks and businesses where currency deals are conducted, a Reuters witness and traders said. Pressure on the pound comes weeks after the United States lifted 20-year-old economic sanctions, potentially opening the long-isolated country to more foreign investment, but increasing demand for currency from traders looking to tap markets abroad.Ĭentral Khartoum on Tuesday saw a heavy security presence around commercial areas typically associated with black market trading. Sudan’s pound has weakened sharply because of a shortage of foreign currency, hitting a low of 27 pounds to the dollar last week as businesses, refused by banks, turned to an increasingly expensive black market. CAIRO – 22 November 2017: Sudanese security forces launched a crackdown on black market currency trading on Tuesday to curb a parallel market that has undermined its banking system, with some importers halting activity amid a dwindling supply of dollars.
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