Khartoum, September 14 (Darfur24)
Sudanese authorities on Saturday raised the customs exchange rate for the US dollar by 8.89%, from 3,960.24 to 4,346.65 Sudanese pounds, an increase of 386.41 pounds.
The increase, the fourth since the beginning of the year, has already pushed up the prices of food, medicines and fuel, according to citizens, suppliers and traders who spoke to Darfur24.
Importers and traders said the higher customs dollar rate would increase the cost of imported goods, particularly food, medicines, medical equipment, spare parts, vehicles, construction equipment and agricultural machinery, as well as other goods subject to customs duties.
Asaad Abdulrahman, a fabric supplier who imports from China, said the increase could force some traders to reduce import volumes or leave the business, particularly those dealing in goods requiring large capital investments. He predicted that prices of some goods could rise by more than 50%.
Abdulrahman said some importers had turned to China because of relatively easier procedures and lower transportation costs, but described the repeated increases in the customs dollar rate as a major obstacle to import activity.
Najla Abdullah, an Omdurman resident, said the impact would be most noticeable in the prices of imported goods, particularly basic foodstuffs, which could further reduce consumers’ purchasing power.
She said rising taxes during the year had contributed to higher commodity prices without sufficient social support to help citizens cope with declining purchasing power.
The latest increase follows an adjustment in August, when authorities raised the customs dollar rate from 3,740 to 3,960 pounds, an increase of 5.6%. In July, the rate had been raised to 3,743.23 pounds from 3,517.89 pounds.
Economic expert Mohammed Awad said the latest increase would worsen inflation and reduce government tax revenues, with effects likely to be more severe amid weak production, the ongoing war, and worsening economic and humanitarian conditions.
Awad told Darfur24 that the decision would place additional pressure on Sudanese households, particularly amid famine indicators and the risk of further geographical expansion of hunger.
He said that while raising customs exchange rates in some countries can protect local production, Sudan’s situation is different because of weak domestic production and the ongoing war.
Fuel prices also increased in several states one day after the customs dollar adjustment.
The government of Al-Jazirah State raised the price of a gallon of gasoline from 26,000 to 36,000 Sudanese pounds.
According to decisions issued by the governments of River Nile and White Nile states and obtained by Darfur24, gasoline prices rose to 34,000 pounds per gallon in River Nile State and 39,000 pounds in White Nile State.