June 11, 2012 (KHARTOUM) – Forex Bureaus in Sudan on Monday started using higher exchange rates for the US dollar in a bid to match its value in the black market and prevent further depreciation of the local currency.
Last month the Central Bank of Sudan (CBS) made a bold effort to curb the thriving black market by allowing Forex bureaus to buy and sell currencies using their own exchange rates as opposed to the official one.
The effort is hoped to bridge the huge gap between the official exchange rate and that used in the black market, where the US dollar continues to trade for twice the official rate of 2.7 Sudanese pounds despite multiple interventions by the central bank to inject hard currency.
Last week the Sudanese pound hit an all-time low of 5.55 in the black market as the central bank failed to supply Forex bureaus with enough hard currency to meet demands.
The secretary-general of the Forex Bureaus Union (FBU), Abdel Al-Moniem Nur Al-Deen, on Monday said that Forex bureaus had decided to hike their exchange rate to 5.53 pounds in the hope of greater proximity to the black market rate.
Nur Al-Deen justified their decision by saying that they had realized that the daily fixed quota of 3,500 USD allocated to Forex Bureaus by the central bank had been leaking to the black market through some traders who present fake travel documents in order to get dollars at the official rate then sell them back in the black market.
The FBU previously announced that some citizens applying for hard currency on travelling justifications have had their requests turned down after it was discovered that they were put up to it by black market traders who buy their dollars to sell them later at a higher rate.
Sudan has been struggling to contain the deteriorating value of its own currency as the flow of hard currency was sharply curtailed following the secession of the oil-rich South Sudan last year.
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Forex Flash: EUR/USD back to the strategy of selling on up-ticks - Danske Bank - NASDAQ
FXstreet.com (Córdoba) - The initial relief rally after the announcement that Spain would accept as much as EUR100bn in European aid to recapitalize its banks proved extremely short lived before the resulting higher debt-to-GDP ratio for Spain took centre stage, according to Danske Bank analyst. "Spanish yields rose yesterday which implies that a sovereign bail-out of Spain has moved closer and therefore the pressure on the euro has returned with a vengeance".
"This however, means that we are back to the strategy of selling EUR/USD on up-ticks, not least ahead of the Greek election June 17. But keep stops tight as any positive news are expected to push the cross higher given the exceptionally stretched positioning in EUR/USD", said Danske Bank.
Forex: USD/CAD hovers 1.0300 - NASDAQ
FXstreet.com (Barcelona) - The USD/CAD is edging lower on the day after having reached a high at 1.0325 in early Asian session. The pair is finding support at 1.0300 surrounding area.
The commodity correlated to the USD/CAD, crude oil, is rising from early European prices, still edging lower on the day by -0.76%, at 82.00 ground. The US has exempted India and six other nations from US economic sanctions after having reduced their imports of Iranian oil.
Mataf.net analysts point to resistances at 1.0320, 1.0355 and 1.0415. On the downside, supports might be found at 1.0280, 1.0255 and 1.0230.
FOREX-Euro rises, but gains seen fleeting - Reuters UK
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Sudan's licensed forex traders further devalue pound - Reuters
KHARTOUM (Reuters) - Sudan's licensed foreign exchange bureaux have started trading Sudanese pounds at a rate nearly equal to the black market price, part of an effort started last month to stamp out unofficial trade, an official said on Tuesday.
Sudan has been facing soaring inflation and a depreciating currency since South Sudan seceded last year, taking about three quarters of the country's oil production with it.
Officials have kept the Sudanese pound's official rate at about 2.7 pounds to the dollar, but started allowing foreign exchange bureaux to trade at a rate of roughly 5 to the dollar last month to curb black market trade.
But the black market rate has remained higher than the devalued rate, continuing to draw many Sudanese eager to take advantage of the difference in the prices. A dollar bought 5.4 pounds on the black market on Monday, traders said.
Bureaux have now raised their rate to 5.48 pounds to the dollar to help close that gap, Abdel Moneim Nur al-Din, deputy head of Sudan's association of foreign exchange bureaux, said.
"We noticed a lot of traffic in the exchange bureaux," he said, adding people would buy from the licensed offices at the official rate and then "go directly to the black market".
The government has also allowed commercial banks to trade at a rate of around 4.9 pounds to the dollar.
The effective devaulation was aimed in part at drawing more foreign currency into the country from Sudanese living abroad.
Sudan was supposed to continue receiving some revenues from oil via fees paid by the landlocked South to export crude through pipelines running through the north, but the two have failed to set a price. Continued...
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