The Sudanese Pound is continuing its accelerated decline against the foreign currencies since the beginning of this week, with rates tripling in a single day. Economists expect the imminent collapse of about 25 banks in the country.

Foreign exchange dealers informed Radio Dabanga that the exchange rate of the US Dollar against the pound in the parallel market reached SDG1,750 yesterday, marking an increase of more than SDG450 from the previous week, a rise of 36 per cent.

The dollar’s exchange rate in commercial banks reached SDG1,260, a difference of approximately SDG500 from the parallel market.

The persisting continuing depreciation of the pound has caused and still is causing the suspension of wholesale transactions in several Sudanese states, and soaring gas and fuel prices. The authorities in Kassala in eastern Sudan announced an increase the prices of benzine, to SDG2,027, and diesel, to SDG1,920 on Wednesday.

The Economic Committee of the Khartoum state’s High Committee for Emergency and Crisis Management on Monday set the official price of a cooking gas cylinder of 12.5 kg at SDG23,600. It attributed the rise in the prices of imported cooking gas to the surge in the dollar’s value.

Imports

Economic reporter Ahmed Omar attributes the successive spikes in the dollar exchange rate to both the capital flight by investors and the government’s reliance on the parallel market to procure weaponry, war equipment, government inputs, fuel, imports of agricultural requirements, and attempts to bridge the gaps in wheat supplies.