The Sudanese Ministry of Finance revealed the establishment of a trade finance fund with a value of two billion dollars to support the import and export of key commodities such as wheat, in light of the diminishing supply of foreign exchange in circulation.
Sudan's economy faces many risks, in light of the inflation rate in excess of 100% and a frequent deficit in bread, fuel and medicine. The local currency fell to an unprecedented low level of 150 Sudanese pounds for the dollar on the black market, compared to the official price of 55 pounds.
A number of banks and private sector companies will contribute to the new fund to support the export of Arabic gum, livestock and gold, and financing the import of basic commodities such as wheat, fuel and medicine. The contributions include $100 million from Al-Junaid Gold Company.
It was not clear what incentives the fund would offer to discourage importers and exporters from the black market and encourage them to go to the fund, whose activities are scheduled to start at the beginning of July.
The establishment of the fund comes in the context of a series of proposed reforms since Sudan began negotiating with the International Monetary Fund on implementing an unfunded program that may pave the way for international financial support.
Source (CNBC Arabic Website, Edited)
