Tuesday 09, October 2018 by Bloomberg

Sudan devalues pound by 39 per cent amid foreign-currency shortage

 

Sudan devalued its currency for the third time this year amid an acute shortage of foreign exchange.

The announcement adds to a raft of measures the government is taking to tackle an economic crisis that’s triggered sporadic protests as the cost of living has surged. The central bank last week relinquished its role in setting the pound’s exchange rate, which is now being determined by an independent committee.

The new rate was set at 47.5 pounds per dollar, compared with 29, according to a statement emailed Sunday by the Khartoum-based Sudan Union of Banks. The currency was devalued to 18 per dollar in January, from 6.70 previously, and then to a band of 28.50-31.50 the following month.

January’s devaluation was part of budget measures enacted by the government to comply with International Monetary Fund recommendations aimed at reviving an economy still reeling from the loss of most of its oil when South Sudan seceded in 2011. Inflation in the North African nation accelerated to 67 per cent in August.

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