Sudan's US Dollar Exchange Rate Drops to SDG 7,400 Amid Weaker Demand

The US dollar exchange rate in Sudan has seen a significant drop to SDG 7,400 on the parallel market, down from its peak of over SDG 8,400 last week. According to foreign currency traders, the decline is attributed to weaker demand for dollars.

Economic analyst Ahmed bin Omar attributes the decrease in demand to an increase in supply of foreign currency and a relative easing in demand after the sharp rise seen last week. He also points out that improved fuel import flows have reduced pressure on the foreign exchange market, particularly as several fuel-carrying vessels have completed their movements and supplies have improved.

The availability of USD 1 billion in revolving finance for the import of strategic commodities by Khartoum Bank has given importers greater access to foreign currency through banking channels, reducing the volume of demand that goes directly to the parallel market. Bin Omar notes that the current decline can be understood as a result of several factors coming together at the same time, including increased foreign currency supply and weaker demand.

However, bin Omar cautions that the rapid decline in the Dollar exchange rate is creating a sense of uncertainty among traders and importers, particularly because some of their current stock was purchased or financed when the exchange rate was higher. He stresses that ensuring a sustained supply of foreign currency through official channels remains the decisive factor.