Su­dan of­fers its cit­i­zens abroad in­cen­tive to sell dol­lars to banks

Kuwait Times - - BUSINESS -

The Cen­tral Bank of Su­dan is of­fer­ing Su­danese liv­ing abroad in­cen­tives to at­tract their for­eign cur­rency into the Su­danese bank­ing sys­tem to al­le­vi­ate the coun­try’s for­eign cur­rency crunch.

The cen­tral bank, which has been keep­ing the Su­danese pound ar­ti­fi­cially strong at 6.4 per dol­lar, is now buy­ing dol­lars from Su­danese liv­ing abroad for around 16 per dol­lar, close to the par­al­lel mar­ket rate. “The value of the in­cen­tive reached 128 per­cent of the value of the dol­lar in the bank­ing sys­tem,” Hazem Ab­dul-Qadir, Su­dan’s Cen­tral Bank spokesman, told Reuters yes­ter­day.

“We hope, through these mea­sures, to at­tract the sav­ings of work­ers abroad and pro­vid­ing more for­eign cur­rency re­sources to the banks to fund im­ports for pri­vate com­pa­nies,” he added.

The spokesman said that there is no in­ten­tion to float the pound, but that the move is meant to close the gap be­tween the of­fi­cial and un­of­fi­cial rate of the dol­lar to at­tract sav­ings from Su­danese ex­pa­tri­ates. The cen­tral bank does not have a value for the Su­danese ex­pa­tri­ates’ re­mit­tances as trans­ac­tions are car­ried out out­side the bank­ing sys­tem. Prices soared in Su­dan af­ter South Su­dan se­ceded in 2011, tak­ing with it three-quar­ters of the coun­try’s oil out­put, the main source of for­eign cur­rency used to sup­port the Su­danese pound and to pay for food and other im­ports. In­fla­tion reached 18.32 per­cent in Septem­ber. — Reuters

Newspapers in English

Newspapers from Kuwait

© PressReader. All rights reserved.