Economy in crisis, Sudan slashes pound

SUDAN slashed the official value of its currency by more than half against the US dollar yesterday, the third devaluation this year in the face of a mounting economic crisis.

The move came just weeks after President Omar al-Bashir replaced the government over its failure to curb economic woes including soaring food prices.

The central bank pegged the Sudanese pound at 47.50 against the dollar. Previously the official rate was 28, while the currency fell to 45.50 on the black market last week.

Last week, the central bank said a committee would look into the acute shortage of foreign currency that is weighing on the pound.

At the end of last year the official rate stood at 6.70 to the dollar.

It was unclear whether the latest devaluation was part of a move to float the pound as recommended by the International Monetary Fund to curb the wide disparity between the official and unofficial rates that had severely impacted the economy.

Sudan has struggled to boost its foreign currency reserves since 2011, taking with it the bulk of the country’s oil revenues. A much-awaited economic revival also failed to materialize after Washington lifted its decades-old sanctions in October 2017.

Despite the IMF’s recommendation, Sudan has been wary of allowing the currency to float freely on the foreign exchange market, fearing that it might trigger unrest.

Abbas Abdallah, a member of the central bank’s committee and head of the bankers union, said the market rate would now be set daily.