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.



Israel's Shekel and Bonds Slide as Gaza Ceasefire Buckles

New Israeli Shekel banknotes are seen in this picture illustration taken November 9, 2021. REUTERS/Nir Elias/Illustration/File photo
New Israeli Shekel banknotes are seen in this picture illustration taken November 9, 2021. REUTERS/Nir Elias/Illustration/File photo
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Israel's Shekel and Bonds Slide as Gaza Ceasefire Buckles

New Israeli Shekel banknotes are seen in this picture illustration taken November 9, 2021. REUTERS/Nir Elias/Illustration/File photo
New Israeli Shekel banknotes are seen in this picture illustration taken November 9, 2021. REUTERS/Nir Elias/Illustration/File photo

Israel's currency fell alongside its bonds and stock market on Tuesday as a wave of deadly airstrikes by its military in Gaza threatened the complete collapse of an already fragile two-month ceasefire with Hamas.

Concerns about both the humanitarian and economic costs of a return to intense fighting spiked as Israel's resumption of bombing of Gaza, which it said was a "preemptive offensive" to try to force the release of its remaining hostages, prompted anger from Hamas.

Israel's shekel dropped as much as half a percent against both the dollar and euro, while many of its government bonds, which suffered a wave of rating downgrades last year due to the war, had their biggest falls in over a month, Reuters reported.

Ronen Menachem, chief markets economist at Mizrahi Tefahot Bank, said a resumption in the conflict could see further falls in the shekel and a renewed rise in Israel’s bond market risk premium.

"The market will react based on whether this is perceived as a defined and limited operation or the opening of a broader campaign," he said.

Israel's Prime Minister Benjamin Netanyahu said he had instructed the military to take Tuesday's "strong action" in response to Hamas's refusal to release the remaining 59 hostages it holds following its October 7, 2023 attacks and its rejection of other ceasefire proposals.

The Palestinian militant group accused Netanyahu of breaching the ceasefire deal and jeopardizing efforts by mediators to secure a permanent truce.

Negotiating teams from Israel and Hamas had been in Doha as mediators from Egypt and Qatar sought to bridge the gap between the two sides after the end of an initial phase in the ceasefire, in which 33 Israeli hostages and five Thais were released in exchange for some 2,000 Palestinian prisoners.