How Much a Dollar Cost?

Since the start of the war, Khartoum has witnessed a stark descent into deterioration. The destruction of critical infrastructure, including businesses and hospitals, has cast a long shadow over the economic landscape. The nation's manufacturing sector, now stands absent, leaving a void in self-sustenance. The heavy reliance on imports for essential goods further compounds the struggle, becoming a significant driving force behind the ongoing depreciation of the Sudanese Pound. As if caught in a cycle, the limited scope of exports has perpetuated this economic challenge.

Rapid Depreciation Snapshot:

Over a span of less than two months, commencing from July, the Sudanese Pound has undergone a substantial depreciation when compared to the US Dollar. This currency shift has seen the Sudanese Pound's exchange rate decline significantly, dropping from an approximate value of 570 to 700 against the US Dollar.

A Repetitive Pattern:

Examining exchange rates for August from 2015 to 2023 reveals a recurring devaluation trend. The Sudanese Pound's value has decreased by a striking factor of around 71, underlining the persistent economic challenges faced by the nation.

Table 1 illustrates the exchange rate of the Sudanese Pound against the US Dollar spanning from January to December for the years 2015 to 2022. The data indicates that both 2018 and 2020 experienced the most significant devaluations, with rates plummeting by approximately 120% and 208% respectively.

Summary:

In analyzing these data points, it becomes evident that the Sudanese Pound’s journey through economic turbulence is a multifaceted tale. From infrastructure woes to trade imbalances, the currency’s depreciation reflects a complex interplay of factors. Regrettably, the evidence presented suggests that this trend of devaluation shows no signs of slowing down. The culmination of the factors explored above casts a shadow over the future of the Sudanese Pound, raising pertinent questions about sustainable solutions and the nation’s economic trajectory.

#sudanesepound #fx #sudanforex

Please note that the information shared above is based on personal observations and not sourced from official institutes. Its accuracy and authenticity cannot be guaranteed. Kindly consider this while using the provided information.

Author: Islam A Baasher.

Source: Authors’ compilation.?

Date: 19/08/2023