Market News
Sudan’s currency tumbles to new low as war hammers economy - CNBC
Oct 21 (Reuters) – Sudan’s currency hit a new low of 10,000 Sudanese pounds to the dollar on Wednesday in parallel market trading, continuing a dramatic fall over recent months as wartime conditions take their toll on the economy.
The rapid 60% depreciation has heaped hardship on Sudanese still trying to regain their footing after devastating conflict and forced displacement caused by the war between Sudanese armed forces and the paramilitary Rapid Support Forces, putting basic food items out of reach.
Sudan’s official exchange rate remains stuck at 4,200 SDG to the dollar, a rate last seen on the parallel market in army-controlled areas in May.
A large portion of that fall has happened over the past month, as the pound fell from a previous low of 8,000, depreciating 20%. Prior to the start of the war in April 2023, the rate was about 600 pounds to the dollar.
Currency traders cited import demands as a chief factor as the government increased the tightly controlled customs dollar, used to calculate duties, to more than 5,600 this week.
As the war continues Sudan has decreased production of key dollar earners while its chief export, gold, has increasingly been smuggled abroad. Meanwhile, the army-controlled government has said the war and reconstruction efforts require dollar-draining imports.
