Sudanese security agents have detained dozens of foreign exchange dealers for black market trading, as the authorities struggle to curb speculation against the pound, brokers said on Thursday.
An acute shortage of hard currency has seen the gap between the official and black market rates for the pound widen sharply, with the currency losing 60 percent of its value against the dollar in the past six months.
On Thursday, the Sudanese pound was trading at between 18.70 and 19.10 to the dollar, compared with an official rate of 6.50.
“Security agents have arrested more than 40 foreign exchange traders in the past few days for trading on the black market,” one foreign exchange broker told AFP on condition of anonymity.
“Trading is very volatile. Every broker has his own rate.”
The arrests came as the authorities warned of firm action against black marketeers to stem the slide in the value of the pound.
“We will adopt new measures against black marketeers as they are indulging in speculation,” Finance Minister Badreldin Mahmoud told parliament on Wednesday.
In September, a World Bank report recommended removing exchange controls to unify the official and black market rates.
Sudan has been under a US trade embargo since 1997, making international banking transactions cumbersome.
The loss of nearly 75 percent of the country’s oil earnings with the secession of the south in 2011 has led to further pressure on the foreign exchange market and seen economic growth slow.
Source: AFP
