Sudan raises customs dollar rate by 29.6% — The Rio Times

In Sudan, the customs service on October 19 increased the fixed dollar exchange rate used to calculate import duties by 29.6% — from 4,346.65 to 5,631.76 Sudanese pounds per US dollar. This increases the amount of customs payments in the national currency for importers of food, medicines, and spare parts.

As The Rio Times reports, the customs service explained the decision by the need to bring the calculation rate closer to the situation on the parallel currency market. According to Radio Dabanga, on October 19 the unofficial rate was about 9,300 pounds per dollar.

Reasons for the rate change

A source at the Ministry of Finance told Darfur24 that raising the rate is intended to help reduce the budget deficit and compensate for lost state revenue. At the same time, the customs rate is still approximately 40% lower than the rate on the unofficial market.

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According to Sudan Tribune, the customs rate was 3,222.8 pounds per dollar in April, 3,743 pounds in July, and 3,960 pounds in August. Thus, it has increased by approximately 75% since April.

Importers' expectations

Economist Haitham Fathi told Radio Dabanga that import costs will rise immediately and prices may increase by at least 30%. He also suggested that importers may reduce or suspend orders, potentially limiting the additional revenue the state expects.

The head of the National Chamber of Importers, Al-Sadiq Jalal al-Din Saleh, previously described the consequences of the April rate increase as “catastrophic.” Darfur24 also reported that some shops in Khartoum suspended sales due to declining purchasing power.