Sudanese banks have shifted the large difference in the exchange rate of the pound in their favor by 9 pounds from the parallel market, which until about 3 weeks ago was buying the dollar with a difference of 60 pounds from the official market.
One of the “Sariha” interviewed by Sky News Arabia in the Arab Market area in central Khartoum revealed an estimated decline of 80 percent in their daily trading volume; He pointed out that many traders resorted to other businesses such as car and real estate brokerage, and some even started practicing simple marginal businesses such as selling vegetables and fruits.
Al-Sareeh told Sky News Arabia that he and other traders are waiting for the banks’ working hours to end at three in the afternoon to hunt down those who want to exchange, most of whom are holders of very small amounts.
In the same context, another trader said that a few Sareeha are still holding on to their positions in the hope that the market will rebound after the Eid al-Adha holiday that begins on Sunday. He explained that the security campaigns that intensified during the past week and led to major confiscations and arrests among senior traders greatly affected the daily trading.
At the end of trading on Tuesday, the pound expanded its gains to about 10 percent in three weeks; Where the price of the dollar fell from 490 pounds to about 440 pounds in parallel market transactions within three weeks; On the other hand, the banks raised the official price to 449 pounds per dollar, compared to 432 pounds at the end of last month.
Muhammad Sheikhoun, professor of economics at Sudanese universities, attributes the current improvement in the Sudanese pound exchange rate to seasonal and security reasons. Sheikhoun points out that the rise in the price of the pound during the past week is due to the increase in the volume of supply due to the vacations of foreigners, which made the banks adopt a policy of raising the price to encourage remittances, which increased the parallel market’s ability to compete and thus the difference in the transfer price decreased, which became more in favor of the market. the official; In addition to the security campaigns that resulted in the arrest of a number of currency dealers inside.
Sheikhoun depends on the sustainability of exchange rate stability on the necessity of implementing a number of economic measures. He told Sky News Arabia that it is important to implement the policy to control the gold trade previously announced by the Council of Ministers and to control basic exports by activating a government mechanism that is able to control the revenues that witnessed a major leakage during the past years, and caused a shortage of the Central Bank’s reserves of hard currencies. .
Sheikhoun also called on the government to expedite the necessary measures to absorb the fleeing cash mass outside the banking sector, estimated at 90 trillion pounds, or more than 90 percent of the total cash mass in the country.
And in a surprising move; The Sudanese government announced on the twenty-first of last February; Unification and liberalization of the Sudanese pound exchange to stop further fluctuations in exchange rates. At that time, the Central Bank reduced the pound by 700 percent, setting an indicative price of 375 pounds, compared to 55 pounds before the flotation.
This step aimed to remove the distortions and imbalances suffered by the Sudanese economy, which is burdened with problems and crises, in light of the high debts to more than 60 billion dollars and inflation to more than 360 percent.
This step, which came as part of a package of economic reforms, helped improve Sudan’s relationship with international financial institutions, enabling it to benefit from the Heavily Indebted Poor Countries (HIPC) initiative and to obtain new financing estimated at more than 4 billion dollars during the past weeks.