In the news the US dollar continued to decline against the Sudanese pound this week as traders grew more optimistic about the likelihood that the Khartoum-Juba agreement on restarting oil exports will hold this time.

The US dollar has since declined by 75 piaster from its high of SDG7, with traders expecting this downward streak to continue as they see a relative increase in supply.

 

The head of the Forex bureau Union confirmed that the significant decrease in foreign exchange rates is a result of the deal brokered on oil exports.

Suppliers are afraid of losing, while buyers are reluctant to buy due to predictions of further declines, with the situation causing an increase in the supply of US dollars.

The recent statements from the Chamber of Commerce and Pharmacists indicate that the decline of the US dollar will not contribute in reducing the price of commodities and medicine.

This is true in the short term, but in the medium and long term the prices of all the commodities will decline for several reasons whether the speculators like it or not.

The amounts which the matrix implementation will provide could reach a billion of US dollars as the oil revenue will provide 3.5 billion in three years, besides the other fees agreed on.

This simply means that the Central Bank of Sudan will start building reserves of foreign currency, hence easies the pressure on dollar demand towards its gradual decline.

Accordingly, the imported commodities’ prices and production inputs will fall gradually.

We believe that what is needed from the government now is to set harmonious financial monitory policies to stabilize the government expense rates towards implementation of the tripartite programme especially the support to the productive sectors besides expanding the exportation programme.

As for the private sector, what it needs is to adopt wise policies far from the cupidity and to consider the economic situation of the country besides the low living conditions of the majority of the citizens.