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Sudan inflation rate rises to 14.31 percent in June

Comments (0) Africa, Business, Latest Updates from Reuters

(Reuters) – Sudan’s annual inflation rate rose to 14.31 percent in June from 13.98 percent in May, on the back of a sharp rise in the prices of consumer goods and services, Sudan’s Central Statistics Office said on Tuesday.

Prices soared in Sudan after South Sudan seceded in 2011, taking with it three quarters of the country’s oil output, the main source of foreign currency used to support the Sudanese pound and to pay for food and other imports.

In December, the Sudanese pound fell to 11.6 pounds to the dollar, its lowest rate on the parallel market since 2011, currency traders said, as the official banking system struggled to supply the dollars needed to buy imports.



(Reporting by Khalid Abdelaziz; Writing by Ola Noureldin)

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Sudan inflation eases to 12.58% in December

Comments (0) Africa, Business, Latest Updates from Reuters

(Reuters) – Sudan’s annual inflation rate eased to 12.58 percent in December from a revised 12.8 percent in November, a monthly report from Sudan’s Central Statistics Office said on Monday.

Prices soared in Sudan after South Sudan seceded in 2011, taking with it three-quarters of the country’s oil output, the main source of foreign currency used to support the Sudanese pound and to pay for food and other imports.

As an oil importer, Sudan has benefited from the fall in global oil prices since last year.

Sudan expects a budget deficit of 1.6 percent of GDP for the coming year, up from 1.2 percent for 2015.

The government said last month it expected growth to increase in the coming year as lower oil prices reduce the burden of its oil import bill.

It projects a growth rate of 6.4 percent, up from an expected 5.3 percent for 2015.


(Reporting by Khaled Abdelaziz; Writing by Ola Noureldin; Editing by Toby Chopra)

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Sudan’s central bank shifts liquidity tools to external fund

Comments (0) Africa, Business, Latest Updates from Reuters

(Reuters) – Sudan’s central bank has phased out its main liquidity tool used by domestic lenders to an external fund, a move it hopes can serve as a model for other countries aiming to tackle a scarcity of sharia-compliant money market instruments.

Islamic banks have grown faster than conventional ones across the Middle East and southeast Asia, but they largely lack liquidity management tools which the industry views as essential for its long-term health and viability.

Demand for such tools is greater in markets like Sudan, which in 1983 became the first country to require its entire banking system to comply with Islamic principles, banning the charging of interest and outright monetary speculation.

There are 28 Islamic banks in Sudan which hold an estimated $10.7 billion in assets, according to Thomson Reuters data.

The central bank has issued Islamic certificates to address banks’ liquidity needs, with the ministry of finance issuing Islamic bonds of its own.

In 2011, however, the introduction of a real-time settlement system led Sudanese banks to accumulate large amounts of central bank certificates, said Mohamed Ismat Yahya, deputy manager of banking operations.

“There has been a staggering stockpile of these certificates,” Yahya said on the sidelines of an industry conference in Bahrain.

“It was important for us to find other solutions to help banks manage their liquidity management away from the central bank.”

To address this, a liquidity management fund was launched in September of last year, a special purpose vehicle jointly owned by Sudanese lenders and managed by Financial Investment Bank.

The fund has seen a 25 percent increase in capital since its launch to reach 1 billion Sudanese pounds, Yahya said, adding that the central bank is no longer involved in daily liquidity requirements of banks except as a lender of last resort.

“We feel that this experience should be carefully studied and be proposed in other jurisdictions.”

Member banks are required to put in capital with a minimum cash contribution of 40 percent, with the remaining 60 percent to be contributed in the form of securities.

Only a handful of countries have widely-used Islamic interbank tools, with Malaysia and Bahrain developing sharia-compliant alternatives to repurchase agreements.

In July, Islamic banks in Indonesia launched a standard contract template for similar interbank tools.


(By Bernardo Vizcaino. Editing by Shri Navaratnam)

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Sudan applies for OPEC membership

Comments (0) Africa, Economy, Latest Updates from Reuters

MOSCOW (Reuters) – Sudan has applied to become an OPEC member, the country’s oil and gas minister Mohamed Zayed Awad was quoted as saying by RIA news agency.

“We have already applied and are waiting for a decision,” he said without elaborating.

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Sudan expects to hit record gold production in 2015

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sudan gold

DUBAI (Reuters) – Sudan said it expects to produce 80 tonnes of gold in 2015, its minister of minerals said on Tuesday, topping last year’s record-high production in the war-torn African nation.

“In the first three quarters of the year we produced about 72 tonnes so we are on track for our target of producing 80 tonnes for 2015,” Sudan’s Minister of Minerals Osheik Mohamed Taher told a mining conference in Dubai.

Gold mining is an important part of government efforts to keep the economy afloat after losing three quarters of its oil production — the main source of state revenue and dollars needed to pay for imports — when South Sudan split off in 2011.

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Sudan’s finance ministry scraps subsidy for wheat imports

Comments (0) Africa, Business, Politics

Khartoum (Reuters) – Sudan has scrapped a special U.S. dollar/Sudanese pound exchange rate used for wheat imports, effectively removing a subsidy, the finance ministry said on Monday.

The subsidy removal is part of a government plan to liberalize wheat imports during a time of low global wheat prices, allowing the government to save money on importing wheat while also avoiding politically-sensitive price hikes.

The rate changed from 4 Sudanese pounds to 6, bringing it in line with the official exchange rate.


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