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July 25 (Port Sudan) – Sudan’s Central Bank on Thursday announced the creation of a $1 billion fund to finance basic imports and support the Sudanese pound, which has seen its value fall sharply since conflict broke out in April.
The black market exchange rate for the pound is currently 2,750 to the dollar, a sharp drop from the pre-war rate of 570.
The central bank said the fund, led by the Bank of Khartoum, would be used to import strategic goods identified by the Ministry of Trade and Supply. Its aim is to stabilize the exchange rate and curb soaring inflation, which has been exacerbated by the ongoing conflict and the resulting economic difficulties.
“The portfolio operates under our direct supervision and control,” the central bank said in a statement. “We are coordinating with regional and international institutions to secure additional foreign exchange resources for import and commodity lending.”
The depreciation of the Sudanese pound has led to a rapid rise in prices, which has put tremendous pressure on Sudanese people who have lost their jobs and livelihoods in the war. The Central Bank of Sudan hopes that the new mechanism will be able to allocate foreign exchange more efficiently and transparently.
The bank also promised to issue a circular to commercial banks outlining the new import regulations.
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