Banks in Sudan open week with record recession

Commercial banks in Sudan opened the week’s trading by recording a new recess in the local currency.

Khartoum: AlTaghyeer

The Sudanese currency continued its tumble against foreign currencies, as a result of continued conflicting speculations between commercial banks and the parallel market.

The Central Bank announced a few days ago the liberalization of exchange rates, and gave money exchanges and commercial banks the freedom to rate foreign currencies as they see fitting.

On Sunday, the price of the dollar reached 605 Sudan pounds in several commercial banks, such as Khartoum Bank, Al-Baraka, and Al-Ahly Al-Masry.

Dollar prices closed in banks’ trading, last week, at 600 pounds, as the highest price offered by banks.

There are concerns that the banks’ attempts to attract foreign currencies will lead to more blows to the declining local currency.

The parallel market still attracts many Sudanese due to the significant differences in rates comparing to banks.

Two rates of foreign currencies appeared in parallel market transactions, with an increase of several pounds in the case of bank transfers compared to cash transfers.

The country is on its way to experiencing a new crisis in the provision of cash, due to the large withdrawals of customers, and the speedy conversion of them into assets, gold, and foreign exchange.

In two weeks, the Sudanese currency lost about 33% of its value, which exacerbated the deterioration of the living and economic conditions of the citizens.

The October 25 coup ended a series of economic successes represented in stabilizing the exchange rate, attracting the savings of expatriates, and achieving foreign exchange surpluses for the treasury of the Central Bank and commercial banks.

Although the legitimate transitional government was overthrown in October, its economic policies manifested itself in low inflation even several months after the military coup.

Western countries and funds stopped financing operations worth billions of dollars that were on their way to Sudan, in protest against the army coup.

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