Sudanese pound dips in value after oil negotiations fail

Southern Sudanese families The Sudanese pound has dipped in value, as the dispute over oil supplies from South Sudan continues. The US dollar reached 6.3 pounds amid limited stability, following the economic agreement between Khartoum and Juba last September.
Abdel Hamid Abdel Baki, Chairman of Sudanese Banks Union told reporters that the failure of negotiations has had an impact. “As soon as the Sudanese oil minister Awad al-Jaz told the South that resuming the flow of its oil is conditioned with implementing the security agreement with his country, activities of selling and buying hard currencies were influenced” he said.
Baki mentioned that the increasing demand for the dollar has previously caused a similar spike in rates, and plans to deal with the problem are being finalised. “I knew that Central Bank of Sudan (CBOS) obtained huge sums of cash, around 950 million dollars. CBOS will use it to meet the needs of the Sudanese banks in the first phase and then it will cover the government’s obligations to ensure the flow of the strategic exported products including wheat and medicine.”
Sudan notified the South on Wednesday that it won’t allow the flow of oil from the region unless the security agreement is finalised. In the meantime, economists have warned that the delay in supplying the oil will negatively influence the economy of the two countries.
A CEO of a company in Khartoum who wishes to remain anonymous told Arabtoday that his company is facing difficulties to obtain the dollar. He said that the company is turning to the black market to cover its needs of foreign currency which makes it a hazardous situation. “We may stop our activities or suspend it for a while if a radical solution isn't found,” he said.