A Sudanese government source told Reuters today that the amended Sudanese budget for 2020 includes a program to adjust the currency exchange rate starting in August with the aim of achieving full liberalization within two years.
The local currency fell to a record low of 150 pounds per dollar on the black market, compared to an official exchange rate of 55 pounds. The black market price reached 140 pounds per dollar yesterday.
The government source said that the private sector will be able to import fuel using the dollar at the free market in August.
The Sudanese government announced on Wednesday that it will have to devalue the Sudanese pound due to the huge deficit in the state budget, which is largely due to the cessation of economic activity due to the Covid-19 pandemic.
Acting Finance Minister Heba Mohamed Ali said during a cabinet meeting that "the reason for the budget amendment is the need to adopt policies that mitigate the negative impact of the Corona pandemic on the economic situation as public revenues decreased by 40%."
The minister in charge added, according to a government statement, that "the deficit has become very large, which necessitated reviewing the budget and taking emergency measures, including the gradual adjustment of exchange rates and the customs dollar over a period of two years to reach the real price."