On the black market on Sunday, the value of Sudan’s currency sank by more than three percent to 465 pounds to the dollar, dealers claimed, as demand for dollars increased amid ongoing political turmoil following an October coup.
After being substantially depreciated in February 2021 as part of economic reforms carried out by a transitional administration and overseen by the International Monetary Fund, the Sudanese pound has generally stabilized in recent months.
In the coup, military authorities dissolved the government before reinstating Prime Minister Abdalla Hamdok in an attempt to defend the changes, although he resigned earlier this month.
“People are purchasing dollars to preserve their investments, expecting a deterioration in the country’s position, and there is a lot of demand,” said one dealer.
Last week, dollars were selling for around 450 pounds. In recent months, the difference between parallel market and official exchange rates has mostly been minimal.
The United Nations launched negotiations last week in an attempt to break the impasse between military officials and pro-democracy civilian organizations and prevent additional upheaval.
Prior to the coup, Sudan’s economy was showing indications of stabilization following years of economic distress that sparked the revolt that overthrew authoritarian former President Omar al-Bashir in 2019.