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Khartoum Reviews Decision to Seize Lands Owned by Saudi Investors

Saudi investments in the country are estimated at more than USD 6 billion, according to the head of the Joint Saudi-Sudanese Business Council. (Asharq Al-Awsat)
Saudi investments in the country are estimated at more than USD 6 billion, according to the head of the Joint Saudi-Sudanese Business Council. (Asharq Al-Awsat)
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Khartoum Reviews Decision to Seize Lands Owned by Saudi Investors

Saudi investments in the country are estimated at more than USD 6 billion, according to the head of the Joint Saudi-Sudanese Business Council. (Asharq Al-Awsat)
Saudi investments in the country are estimated at more than USD 6 billion, according to the head of the Joint Saudi-Sudanese Business Council. (Asharq Al-Awsat)

Sudan’s Minister of Investment, Dr. Al-Hadi Muhammad Ibrahim, underlined on Monday a strategic plan to solve issues pertaining to Saudi investments in his country.

He said he was looking forward to activating the banking mechanisms between the two sides, after the removal of Sudan from the US list of countries sponsoring terrorism.

The minister also stressed the importance of Saudi investments in Sudan, as one of the most significant resources for the development of the Sudanese economy that provides job opportunities for the youth.

His remarks came during a virtual meeting with members of the Executive Committee of the Saudi-Sudanese Business Council to discuss the main obstacles facing Saudi investors in Sudan at the request of Eng. Hussein Saeed Bahri, Chairman of the Council.

Bahri told Asharq Al-Awsat that the meeting focused on the reality and size of Saudi investments, the obstacles facing such investments, and the need to develop a clear strategy to solve related problems.

He added that the discussions emphasized the need to find a solution to the problem of ports and the means to provide fuel, in addition to reconsidering recent decisions to reclaim some lands owned by Saudi investors in Sudan.

He also quoted the Sudanese Minister of Investment as saying that Saudi investments would receive great attention from his government, as they currently constitute the biggest share of investments in the country.

The head of the joint business council pointed out that Saudi investments in Sudan were estimated at more than USD6 billion in agriculture, industry and the services sector, with a particular focus on agricultural and livestock projects.

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Dollar Strengthens on Elevated US Bond Yields, Tariff Talks

A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
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Dollar Strengthens on Elevated US Bond Yields, Tariff Talks

A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo

The dollar rose for a second day on Wednesday on higher US bond yields, sending other major currencies to multi-month lows, with a report that Donald Trump was mulling emergency measures to allow for a new tariff program also lending support.

The already-firm dollar climbed higher on Wednesday after CNN reported that President-elect Trump is considering declaring a national economic emergency as legal justification for a large swath of universal tariffs on allies and adversaries.

The dollar index was last up 0.5% at 109.24, not far from the two-year peak of 109.58 it hit last week, Reuters reported.

Its gains were broad-based, with the euro down 0.43% at $1.0293 and Britain's pound under particular pressure, down 1.09% at $1.2342.

Data on Tuesday showed US job openings unexpectedly rose in November and layoffs were low, while a separate survey showed US services sector activity accelerated in December and a measure of input prices hit a two-year high - a possible inflation warning.

Bond markets reacted by sending 10-year Treasury yields up more than eight basis points on Tuesday, with the yield climbing to 4.728% on Wednesday.

"We're getting very strong US numbers... which has rates going up," said Bart Wakabayashi, Tokyo branch manager at State Street, pushing expectations of Fed rate cuts out to the northern summer or beyond.

"There's even the discussion about, will they cut, or may they even hike? The narrative has changed quite significantly."

Markets are now pricing in just 36 basis points of easing from the Fed this year, with a first cut in July.

US private payrolls data due later in the session will be eyed for further clues on the likely path of US rates.

Traders are jittery ahead of key US labor data on Friday and the inauguration of Donald Trump on Jan. 20, with his second US presidency expected to begin with a flurry of policy announcements and executive orders.

The move in the pound drew particular attention, as it came alongside a sharp sell-off in British stocks and government bonds. The 10-year gilt yield is at its highest since 2008.

Higher yields in general are more likely to lead to a stronger currency, but not in this case.

"With a non-data driven rise in yields that is not driven by any positive news - and the trigger seems to be inflation concern in the US, and Treasuries are selling off - the correlation inverts," said Francesco Pesole, currency analyst at ING.

"That doesn't happen for every currency, but the pound remains more sensitive than most other currencies to a rise in yields, likely because there's still this lack of confidence in the sustainability of budget measures."

Markets did not welcome the budget from Britain's new Labor government late last year.

Elsewhere, the yen sagged close to the 160 per dollar level that drew intervention last year, touching 158.55, its weakest on the dollar for nearly six months.

Japan's consumer sentiment deteriorated in December, a government survey showed, casting doubt on the central bank's view that solid household spending will underpin the economy and justify a rise in interest rates.

China's yuan hit 7.3322 per dollar, the lowest level since September 2023.