Sudanese Campaigns Urge Transfer of Dollars via Banking System

Sudanese shop owners wait for customers at a bazaar in Khartoum, Sudan, June 24, 2019. (Reuters)
Sudanese shop owners wait for customers at a bazaar in Khartoum, Sudan, June 24, 2019. (Reuters)
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Sudanese Campaigns Urge Transfer of Dollars via Banking System

Sudanese shop owners wait for customers at a bazaar in Khartoum, Sudan, June 24, 2019. (Reuters)
Sudanese shop owners wait for customers at a bazaar in Khartoum, Sudan, June 24, 2019. (Reuters)

Campaigns have been launched on social media to support the Sudanese government’s decision on Sunday to adopt a managed float of its currency and unified its fixed exchange rate.

The campaigns called on all the Sudanese abroad and at home to transfer their money through official banks to support the country’s economy and fight traders and speculators in foreign currencies in the black market.

Touring a number of banks and money exchange offices in the capital, Khartoum, Asharq Al-Awsat saw a remarkable turnout of citizens who queued to transfer foreign currencies into the Sudanese pound.

Social media activists rushed to post receipts of the financial transfers in dollars and Saudi riyals. They launched a campaign to encourage the people, urging them to spend their money through official outlets to curb black market practices.

Majdi al-Hajj, an employee at the Faisal Islamic Bank at the University of Khartoum, told Asharq Al-Awsat that the bank transferred money for individuals from euros, US dollars and the Saudi riyal at the new official rate.

He said it was a promising start, adding that he expects the amounts transferred to soon increase.

Meanwhile, the buying and selling activities in the black market saw a remarkable drop due to the lack of demand and the abundance of supply.

A currency dealer in the Arab market in central Khartoum told Asharq Al-Awsat that the “currency trade has weakened significantly, prompting us to reduce the price of the dollar from 390 to 380 pounds,” but he expected the market to recover at any time.

He attributed the price decline in the free market to the lack of demand and the large supply of foreign currencies.

However, he pointed out that banks do not currently meet the needs for foreign currencies.

Secretary-General of the Secretariat of Sudanese Working Abroad (SSWA) Makin Hamid Terrab told Asharq Al-Awsat that the agency held several meetings with the economic sector in the transitional government to discuss the remittances of Sudanese expatriates and immigrants.

Unifying the exchange rate is a positive measure that ensures the flow of remittances, he stressed, noting that they are estimated at a minimum of six billion dollars annually. “It also helps attract foreign capital and international aid.”

He added that solutions are being studied to meet Vision 2021. They include providing assistance to Sudanese abroad in terms of education, housing and health insurance, he said.

The US dollar had been trading at over 350 pounds to the dollar on the black market, while its official rate was at 55 pounds to the dollar.

Following the flotation, local media reported banks were selling the dollar at an average of 375 pounds, and buying the US currency for an average of 390, in an attempt to attract those trading in the unofficial currency market.

The government is hoping to introduce remittances of Sudanese expatriates and immigrants abroad into the formal banking system. Most of these remittances used to be traded in the black market.



US Solar Tariffs Could Drive Asia Transition Boom

Massive new tarrifs could hit solar panels made in Southeast Asia from June. (AFP)
Massive new tarrifs could hit solar panels made in Southeast Asia from June. (AFP)
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US Solar Tariffs Could Drive Asia Transition Boom

Massive new tarrifs could hit solar panels made in Southeast Asia from June. (AFP)
Massive new tarrifs could hit solar panels made in Southeast Asia from June. (AFP)

Massive planned US duties on solar panels made in Southeast Asia could be a chance for the region to ramp up its own long-stalled energy transition, experts say.
Earlier this month, Washington announced plans for hefty duties on solar panels made in Cambodia, Vietnam, Thailand and Malaysia.
The levies follow an investigation, launched before US President Donald Trump took office, into "unfair practices" in the countries, particularly by Chinese-headquartered firms, AFP said.
If approved next month, they will pile upon tariffs already imposed by the Trump administration, including blanket 10-percent levies for most countries, and 145 percent on Chinese-made goods.
For the US market, the consequences are likely to be severe. China makes eight out of every 10 solar panels globally, and controls 80 percent of every stage of the manufacturing process.
The new tariffs "will practically make solar exports to US impossible commercially", said Putra Adhiguna, managing director at the Energy Shift Institute think tank.
Southeast Asia accounted for nearly 80 percent of US solar panel imports in 2024.
And while investment in solar production has ramped up in the United States in recent years, the market still relies heavily on imported components.
For Chinese manufacturers, already dealing with a saturated domestic market, the raft of tariffs is potentially very bad news.
Many shifted operations to Southeast Asia hoping to avoid punitive measures imposed by Washington and the European Union as they try to protect and nurture domestic solar industries.
The proposed new duties range from around 40 percent for some Malaysian exports to an eye-watering 3,521 percent for some Cambodia-based manufacturers.
- Tariffs 'accelerate' transition -
But there may be a silver lining for the region, explained Ben McCarron, managing director at Asia Research & Engagement.
"The tariffs and trade war are likely to accelerate the energy transition in Southeast Asia," he said.
China will "supercharge efforts" in regional markets and push for policy and implementation plans to "enable fast adoption of green energy across the region", driven by its exporters.
Analysts have long warned that countries in the region are moving too slowly to transition from planet-warming fossil fuels like coal.
"At the current pace, it (Southeast Asia) risks missing out on the opportunities provided by the declining costs of wind and solar, now cheaper than fossil fuels," said energy think tank Ember in a report last year.
For example, Malaysia relied on fossil fuels for over 80 percent of its electricity generation last year.
It aims to generate 24 percent from renewables by 2030, a target that has been criticized as out of step with global climate goals.
The tariff regime represents a double opportunity for the region, explained Muyi Yang, senior energy analyst at Ember.
So far, the local solar industry has been "largely opportunistic, focused on leveraging domestic resources or labor advantages for export gains", he told AFP.
Cut off from the US market, it could instead focus on local energy transitions, speeding green energy uptake locally and driving a new market that "could serve as a natural hedge against external volatility".
Still, replacing the US market will not be easy, given its size and the relatively nascent state of renewables in the region.
"Success hinges on turning this export-led momentum into a homegrown cleantech revolution," said Yang.
"Clearance prices" may be attractive to some, but countries in the region and beyond may also be cautious about a flood of solar, said Adhiguna.
Major markets like Indonesia and India already have measures in place intended to favor domestic solar production.
"Many will hesitate to import massively, prioritizing trade balance and aims to create local green jobs," he said.