KHARTOUM: Sudan’s currency has fallen to a record low against the dollar on the black market since South Sudan started reducing cross-border oil flows in a row over alleged support for rebels, dealers said.
There is little foreign trading in the Sudanese pound but the black market rate is an important indicator of the mood of the business elite and of ordinary people left weary by years of economic crises, ethnic conflicts and wars.
The rate is also watched by foreign firms such as cellphone operators Zain and MTN and by Gulf banks who sell products in pounds and then struggle to convert profits into dollars. Gulf investors also hold pound-denominated Islamic bonds sold by the central bank. Yesterday, one dollar bought 7.35 pounds on the black market — which has become the business benchmark — compared to 7 last week, black market dealers said. The central bank rate is around 4.4. The pound has more than halved in value since South Sudan became independent in July 2011
Reuters
