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| 14 December, 2017

Sudan inflation drops to 24.76% in November

The Sudanese pound has weakened since October.

A man counts notes after receiving the new Sudanese currency at a Central Bank of Sudan branch in Khartoum.

A man counts notes after receiving the new Sudanese currency at a Central Bank of Sudan branch in Khartoum.

REUTERS/Mohamed Nureldin Abdallah
KHARTOUM- Sudan's annual inflation rate fell to 24.76 percent in November from 33.08 percent the previous month, its Central Bureau of Statistics said on Thursday, as the government pushes for economic reforms aimed at boosting the economy.

Sudan's economy has been struggling since the south seceded in 2011, taking with it three-quarters of the country's oil output, its main source of foreign currency and government income.

The Sudanese pound has weakened since October after the United States lifted a 20-year-old trade embargo, prompting businesses to increase import volumes and putting pressure on already scarce foreign currency.

The central bank holds the pound at 6.7 to the U.S. dollar, but unavailability of foreign currency in formal channels has meant traders have had to resort to a black market where the dollar is being traded at triple its pegged value.

In a report released earlier this week, the International Monetary Fund urged Sudan to float its currency and tighten monetary policy to attract investment and revive its economy.

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After the U.S. lifted economic sanctions, Sudan announced a bundle of policies, including tight import restrictions, aimed at boosting its currency.

(Reporting by Ali Mirghani; Writing by Arwa Gaballa Editing by Jeremy Gaunt) ((arwa.gaballa@thomsonreuters.com; +20 2 2578 3290;))