Khartoum — The exchange rate of the Sudanese Pound against the US Dollar has continued to decline for the third day in a row, reaching SDG20 on Thursday. The Pound fell sharply against the Dollar on the streets of Khartoum over the last months and rose to SDG22 in August.
Yesterday in an interview with Radio Dabanga, economic expert Dr Siddig Kabello said that the exchange rate of the Pound declined "because of the season": it is the end of the Hajj, pilgrimage, and the end of the admission season for schools and universities.
He expected the rate to rise once again as the demand for goods and services will increase. Kabello ruled out a continued decline in the Pound's exchange rate, but at the same time, pointed to the difficulty of predicting a decline based on psychological factors that are not governed by economic laws.
"I do not rule out a link between the exchange rate of the US Dollar and the imminent decision of the United States to lift economic sanctions on Sudan. However the lifting of sanctions will not reduce the demand for the Dollar, or provide Sudan with additional resources for hard currencies."
Removal of sanctions
Kabello explained that production will only increase with investment in the Sudanese economy. "And the flow of investments should be conditioned with the prevalence and growth of security, peace, political stability, stability of economic policies, confidence in the system and respect for the rule of law.
"But the lifting of sanctions should not be associated with a flow of investments - this is a false expectation that indicates the lack of know-how in the Sudanese economy." The decision to lift or keep 20-year-old economic sanctions that the United States imposed on Sudan for being "a state sponsor of terrorism" lies with the Trump administration on 12 October.
Finance Minister Mohamed Osman El Rikabi acknowledged this week that the lifting of the US sanctions on Sudan would not affect the people's livelihood quickly. He said that such a breakthrough requires the government to do a lot of work and to deal more with the international community and market.