Sudanese Pound Devalued by 19% as Banks Freed to Set Rates

Sudanese authorities have decided to unify the exchange rate of the Sudanese pound, weeks after the currency’s value began to slip again on the black market. (Getty Images)
Sudanese authorities have decided to unify the exchange rate of the Sudanese pound, weeks after the currency’s value began to slip again on the black market. (Getty Images)
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Sudanese Pound Devalued by 19% as Banks Freed to Set Rates

Sudanese authorities have decided to unify the exchange rate of the Sudanese pound, weeks after the currency’s value began to slip again on the black market. (Getty Images)
Sudanese authorities have decided to unify the exchange rate of the Sudanese pound, weeks after the currency’s value began to slip again on the black market. (Getty Images)

Sudanese banks were selling dollars at a rate of 530 pounds on Tuesday, a drop of about 19% from the previous rate, after authorities moved to counter a slide in the value of the pound on a resurgent black market.

The central bank said on Monday that banks and currency exchanges would set their own exchange rates without central bank intervention. An emergency economic committee under Sudan's ruling council had said official and black market exchange rates would be unified.

Both the Bank of Khartoum, Sudan's largest bank, and the Saudi Sudanese Bank, had set a rate of 530 pounds to the dollar on Tuesday morning, from about 445 pounds previously, a Reuters reporter said. Other banks set similar rates.

The dollar was trading at around 560 pounds on the parallel market.

Sudan's economy has come under renewed pressure since substantial international support was suspended following a military coup in late October.

The military dissolved a civilian government that had carried out rapid economic reforms, including a sharp devaluation of the pound under a "managed float" policy in February 2021.

After that devaluation, the exchange rate had held steady for several months, and the black market had all but disappeared before it began to resurface in recent weeks.



S&P Global Upgrades Credit Rating of Saudi Arabia to A+ with Stable Outlook

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat
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S&P Global Upgrades Credit Rating of Saudi Arabia to A+ with Stable Outlook

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat

Credit rating agency S&P Global upgraded Saudi Arabia’s local and foreign currency credit rating to A+ with a stable outlook.

In its report, the agency stated that the upgrade with a stable outlook reflects the Kingdom's continued progress in economic diversification, sustained growth of the non-oil sector, and development of the local capital market.

These factors help offset the risks associated with rising external sovereign debt, which is being strategically invested to achieve the objectives of Saudi Vision 2030 while managing debt servicing costs.

The agency highlights the Kingdom's measures to spur investments that will support non-oil growth prospects and economic resiliency over the medium term.

As a result, S&P forecasts real gross domestic product (GDP) growth to average 4% over 2025-2028.

The agency expects the Kingdom’s fiscal deficit to average 4.2% of GDP during the same period, driven by transformational spending aimed at accelerating economic diversification.

Furthermore, it is expected that the Kingdom will maintain its comfortable net asset position. Saudi Arabia has seen multiple credit rating upgrades from global rating agencies over the past few years.

These advancements reflect the Kingdom's improved institutional strength and ongoing implementation of structural reforms. They are enabling a successful economic transformation and unprecedented economic diversification in the context of fiscal sustainability and enhanced financial planning efficiency that will continue to support its strong and resilient fiscal position.