Sudan currency hits record low

Khartoum: Sudan’s currency has fallen to a record low against the dollar on the black market as people rush to change savings into hard currency ahead of a lifting of fuel subsidies expected to drive up inflation, dealers said on Saturday.

There is little foreign trading in the Sudanese pound but the black market rate is a key 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.

On Saturday, $1 bought 7.8 pounds (Dh6.5) on the black market — which has become the business benchmark — compared to 7.3 a week ago, black market dealers said.

This is the lowest rate since the launch of the currency in 2007. The central bank rate is around 4.4.