The Sudanese pound hit a new low of 10,000 to the dollar on the parallel market on Wednesday, 21 October, further raising the cost of imports and squeezing purchasing power in an economy ravaged by war.
The currency has lost 20% in one month from a previous threshold of 8,000 pounds, according to currency dealers interviewed by Reuters. The official rate remains set at 4,200 pounds to the dollar, less than half the informal rate seen on Wednesday.
Sudan Tribune had recorded a dollar above 7,300 pounds in early September, then above 8,800 pounds on 7 October.
Before the conflict began in April 2023, a dollar traded at around 600 pounds. It now takes nearly seventeen times as much local currency to buy the same currency on the parallel market.
Dealers attribute the latest fall to demand for dollars to finance imports. The government this week also raised the customs rate used to calculate duties on imported goods to above 5,600 pounds.
The depreciation directly raises the price of goods bought abroad, at a time when many households have already lost their homes or incomes. Reuters reports that rising prices are putting staple foods out of reach for part of the population.
The war between the Sudanese army and the Rapid Support Forces has reduced output in sectors that earned foreign currency. Gold exports, the country’s main source of dollars, are also being eroded by smuggling.