Sudan continues currency auction as pound slips on black market

KHARTOUM, June 1 (Reuters) – Sudan’s central bank allocated $ 43.4 million in its second foreign exchange auction, a nearly three-fold increase from the previous week, while the The difference between the country’s official exchange rates and those on the black market continued to widen.

One dollar was worth 470 Sudanese pounds on the black market, up from 445 a week ago, when the official rate was 424.

Sudan sharply devalued its currency in February, switching to a flexible managed float system, which the auctions are designed to support.

However, the auctions, which represent the first time in years that the Sudanese central bank has provided dollars to commercial banks, did not slow the decline of the black market pound for which traders did not specify a cause. precise.

“Some parties have sought in recent days to disseminate incorrect and damaging information on the exchange rate in an attempt to thwart the policy of unifying exchange rates,” the Union of Banks of Sudan said in a report on Tuesday. communicated.

Sudan’s money supply jumped 60% in February, according to central bank figures.

Some 29 banks participated in the auction, in which 184 applications were accepted out of 277, at rates between 386 and 425 Sudanese pounds to the dollar, the central bank said.

The auction was limited to importers who needed dollars to import products on an official list of essentials that included medicines, tea, and agricultural and industrial inputs.

The central bank also announced a third auction on Tuesday in a separate statement, to be held on June 6.

Report by Khalid Abdelaziz, additional report by Patrick Werr; written by Nafisa Eltahir; edited by Richard Chang

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