Shaken by the economic crisis, Sudan will let its currency float

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This move will likely cause commodity and service prices to rise rapidly in response to a decline in the value of the pound.

Ganqoul said the move was part of a package of reforms aimed at stabilizing the pound’s exchange rate. Local media report that the currency traded at around 570 Sudanese pounds to the dollar on the black market while its official rate was just over 445 pounds to the dollar.

Sudan devalued its currency in February last year and the exchange rate had remained stable, although in recent weeks it has risen again on the black market.

Sudan’s ruling generals are struggling to stabilize the country after taking power last October. The coup upended Sudan’s democratic transition after a popular uprising forced the military to depose autocratic President Omar al-Bashir in April 2019.

After the coup, Western governments and global financial institutions suspended aid to Sudan in order to pressure the generals to return to a civilian-led government.

Sudan has struggled for years with a series of economic problems, including a huge budget deficit and widespread shortages of essential goods and soaring prices of bread and other staples. The country was plunged into an economic crisis when the oil-rich south seceded in 2011 after decades of war, taking with it more than half of government revenue and 95% of exports.

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