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Sudanese Pound Falls to Record Low on Black Market

Sudan's new currency sits behind a window at the central bank in Khartoum, Sudan. (AP)
Sudan's new currency sits behind a window at the central bank in Khartoum, Sudan. (AP)
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Sudanese Pound Falls to Record Low on Black Market

Sudan's new currency sits behind a window at the central bank in Khartoum, Sudan. (AP)
Sudan's new currency sits behind a window at the central bank in Khartoum, Sudan. (AP)

Sudan’s pound fell to a record low on the black market, traders said on Monday.

The dollar was selling for 100 Sudanese pounds in cash transactions compared to 88 pounds a week ago, as the gap with the official rate of 45 to the dollar continues to widen.

The country’s ruling sovereign council and cabinet agreed the budget in December - the first since the toppling of longtime ruler Omar al-Bashir, whose final years in power were marked by deep economic woes.

The central bank has been printing Sudanese pounds equivalent to $200 million a month to buy and export gold to finance subsidized commodities, mainly fuel and wheat, which has led to “explosive inflation and near freefall of the exchange rate in the parallel market”, the finance ministry said in a 2020 budget statement in December.

Sudan’s economy was hit hard when the south of the country seceded in 2011, costing it three-quarters of its oil output, a crucial source of foreign currency.

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Gold Hits Record High

FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
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Gold Hits Record High

FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo

Gold prices charged to an all-time high on Thursday as expectations of more US Federal Reserve rate cuts and uncertainty over the US presidential election boosted demand for bullion, while traders awaited US economic data.
Spot gold rose 0.2% to $2,678.13 per ounce by 0934 GMT, after hitting a record high of $2,685.60, Reuters reported.
US gold futures gained 0.1% to $2,693.60.
"With the US election less than three weeks away, market caution is likely to remain a key theme. Given the tight race between Donald Trump and Kamala Harris, this adds another layer of uncertainty – stimulating demand for safe haven assets," said FXTM senior research analyst Lukman Otunuga.
Gold has added over 30% so far this year, with a record-breaking rally driven by expectations that the Fed will further cut rates this year after a jumbo reduction last month and on the ongoing geopolitical uncertainties.
The European Central Bank is also expected to make its first back-to-back rate cut in 13 years later in the day.
Lower interest rates and geopolitical tensions tend to boost bullion, which is considered a safe asset and yields no interest.
"The LBMA poll that came out from Miami earlier in the week, where the base look for gold prices was to rally near $3,000 in the next year and silver doing even better, I think that potential is also just attracting a bit of attention," said Ole Hansen, head of commodity strategy at Saxo Bank.
The price of gold is expected to rise to $2,941, a troy ounce over the next 12 months from the current $2,661, delegates to the London Bullion Market Association's annual gathering predicted earlier this week.
Traders are on the lookout for the US retail sales and industrial production data for September and weekly jobless claims data due later in the day.
"A set of disappointing US data may fuel bets around Fed rate cuts," Otunuga added.
Elsewhere, spot silver fell 0.3% to $31.57 per ounce. Platinum rose 0.6% to $999.20 and palladium fell 0.4% to $1,019.56.