• 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

  • Rich getting richer

    Economists differ on how to tackle the chasm between rich and poor, says Leopold Scholtz.

See More

Sudan currency falls to historic low

Dec 02 2012 15:39 Reuters
Sudan flag


Related Articles

Sudan to produce 50 tonnes of gold

South Sudan becomes IMF member

Supply worries keep oil above $125

Sudan opens six blocks to bids

Stanbic Bank expands into South Sudan


Khartoum - Sudan's currency dropped to a historic low against the dollar on the key black market and might take another hit as hopes for a quick resumption of South Sudanese oil exports fade, dealers said on Sunday.

The Sudanese pound has more than halved in value since South Sudan became independent in July 2011, taking with it three-quarters of the united country's oil output.

As well as being a major source of revenue for Sudan, oil also provided dollars needed for imports. A scarcity of hard currency drove up annual inflation to 45% in October.

The crisis was worsened by the shutdown of landlocked South Sudan's oil output in January during a row over how much the new nation should pay Khartoum to pipe crude to port using Sudanese infrastructure.

The former civil war foes agreed in September to resume oil exports but have been unable to agree on setting up a border security zone first - a preconditon for resuming oil flows.

The two are holding talks in Khartoum this week to end the stalemate but foreign currency traders said they had little hope the dollar scarcity in Sudan would improve anytime soon.

"There are no dollars in Khartoum and it's getting worse day by day," said a dealer on the black market, which has become the benchmark.

"You need dollar supplies now but it's absolutely unclear when oil exports will resume. It will come late, if at all."

On Sunday, a dollar bought 6.5 pounds on the black market compared with 6.3 a week ago. This is the lowest rate since the Sudanese pound was introduced in 2007 and also well below the official rate of around 4.4.

"I think by the end of the year the rate will be 7," said another dealer, echoing forecasts by other traders. "There is a widening gap between demand and supply of dollars," he said, declining to be identified.

Over the past few weeks, the central bank has tried to calm the situation by repeatedly saying it will supply the market with foreign currency.

But an executive at an import firm said: "It's almost impossible to make business in Sudan at the moment as the rate changes. I cannot make any calculations."

South Sudan was meant to resume oil production on November 15 with the first exports to hit markets by January.

But this schedule is no longer realistic after Juba postponed resumption of oil production last month, accusing Sudan of placing new obstacles in the way of the restart.

In July, Sudan's central bank devalued the pound, almost halving its value to try end a gap with the black market rate, but the spread has widened since.

sudan  |  markets  |  currencies


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

10 most expensive cars In the world

This is car porn at its best!


Luxury living

Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it
Watch: Flying first class has never been this luxurious!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote