Recovery of the Sudanese pound against the dollar raises questions and concerns

Altaghyeer: Khartoum

A surprise recovery of Sudanese currency was reported as the pound surged against the US dollar, and according to black market brokers the US dollar soured to 41 pounds from the higher rates of 47 and 43 and the beginning of this week.

Dealers attributed the recovery to the signing of the agreement between South Sudanese factions in Khartoum last Monday in an event attended by neighboring countries’ leaders, including the Ugandan President Yoweri Museveni.

Some dealers characterized the relative surge of the pound as unrealistic indicating that it might drop again and exceed 50 pounds for a dollar during the current month.

Citizens wondered about the reason to this ascension while prices of commodities and services kept a steadily rising track.

Some observers accuse influential entities in the government of speculation activity by treating the dollar as a commodity and lowering its price, purchasing all the supplied amount and hiking the price afterwards. Meanwhile, Sudanese currency is subject to a dramatic decline that started after the secession of South Sudan in 2011.

Sudanese economy suffers structural impediments and its crises exacerbated after secession of the oil-rich South in 2011 and the loss of three quarters of oil revenue.

Economic experts hold the government responsible for the “economic collapse” because of its heavy reliance on oil imports’ revenues and adopting financial and economic policies resulting in severe repercussions on production sectors (agriculture sector with its crop and animal divisions and industrial sector), and cutbacks in spending on education and health which led to a continued decline in human development indices. Moreover, Transparency International ranks Sudan among the most corrupt states in the world according to its annual corruption perceptions index report.

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