Economic
Banking Expert Reveals Reasons Behind the Rise of the Sudanese Pound
Sudan Events – Rahab Abdullah
Banking expert Dr. Louay Abdul Munim attributed the recent decline in the dollar’s value in Sudan’s parallel market to several factors. Dr. Louay explained to Al-Ahdath that the rising value of the Sudanese pound against the dollar is due to a combination of factors, including an increase in artisanal gold production, which reached 29.2 tons by August, with returns of $1.86 billion. This figure is expected to reach 60 tons by year’s end as licensed companies resume operations, representing a significant increase compared to last year’s production of 6.4 tons, which was impacted by the war.
Dr. Louay also highlighted the impact of a security campaign targeting currency traders and intensified security efforts to curb gold and currency smuggling. He noted that preparations for the agricultural season have expanded cultivated areas to 139 million acres, including 17 million for sorghum, and with the significant rainfall, the Ministry of Agriculture expects production to reach 7 million tons, surpassing Sudan’s estimated need of 5 million tons, thereby boosting strategic reserves through government purchases from farmers.
Dr. Louay added that significant advancements in air transportation, such as upgrading Atbara Airport to international status, the development of Port Sudan International Airport as an aircraft maintenance hub, and the operation of Dongola and Kassala airports, are expected to positively impact trade flow and support economic growth.
Additionally, he noted the role of the strategic commodity portfolio launched by the Central Bank of Sudan in partnership with Bank of Khartoum, aimed at reducing speculation on the dollar in the parallel market. This development, coupled with the World Bank’s recent approval of a $300 million grant to Sudan by June 2025, signals a positive outlook for international cooperation after improvements in Sudan’s financial indicators, especially amid military victories over terrorist militias, contributing to security and stability necessary for development and investment.