Monday, March 5, 2018

Sudan’s soaring inflation

In the first weeks of 2018, the Sudanese pound devalued rapidly, going from 32 SDG to the dollar to 44 SDG in just a few days. People rushed to withdraw their savings to purchase dollars or gold.

The banks responded by quickly limiting the amount of money people could take out. Sudan’s official inflation rate in January soared to 52%. Sudan’s implied inflation based on black market rates was much higher at 122%, the world’s second highest after Venezuela.
In 2017, Sudan reportedly produced 93.4 tonnes of gold, yet only 28.9 tonnes was registered at the Central Bank of Sudan. Most of the rest was smuggled abroad and sold illegally. A lack of hard currency and rampant inflation is devastating the economy.
“Right now, the prices change per hour and traders will sometimes not sell you what you need and you have to buy it at the black market”