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Sudan central bank devalues currency amid soaring inflation

Sudan central bank devalues currency amid soaring inflation

Sudan

Sudan’s central bank has said it will devalue the local currency to an upper limit of 31.5 Sudanese pounds against the US dollar.

The new official exchange rate will take effect on Monday, the central bank added.

This is the second such move in weeks amid soaring inflation which currently stands at 34 percent.

The Sudanese pound has fell to record lows on the black market this year after is was devalued to 18 per dollar from 6.7 following a call by the International Monetary Fund (IMF), to let the currency float freely.

The central bank called on commercial banks for better coordination in order to put the foreign currency in “good use to help import essential items”.

Trading on the foreign exchange market has been very volatile since October 12, when the US lifted its 20-year-old trade embargo imposed on Khartoum.

Sudan’s economy has been struggling since the south seceded in 2011, taking with it three-quarters of its oil output.

Since January, Sudan has witnessed sporadic anti-government protests after a sharp rise in food prices.

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