Sudan Importers Accuse Government Bans of Fueling Currency Collapse and Inflation

June 10, 2026 (KHARTOUM) – The Sudanese National Chamber of Importers has accused the government of causing increased inflation and the decline in the value of the national currency, after an April order prohibited the importation of numerous products.

In late April, the Sudanese government banned the importation of more than 40 high-end and unnecessary items. This action was intended to reduce speculative activities in unofficial currency exchange markets, enhance local production, and strengthen the economic situation.

Nevertheless, the Sudanese pound hit a historic low on Wednesday, as the U.S. dollar was exchanged for approximately 4,700 pounds, representing its greatest decline so far. This downturn is fueled by the continuous conflict, declining exports, and a growing import cost.

The traders' association called on the government to quickly lift the restriction, stating that the measure had not succeeded in stabilizing the currency, caused price increases, and lowered public income.

Al-Sadiq Jalal al-Deen Saleh, leader of the National Chamber of Importers, informed journalists on Wednesday that evidence showed the decision did not work. He mentioned that the chamber had earlier advised the prime minister through a letter regarding the financial consequences.

Salih mentioned that the order overlooked the main factors behind the pound's drop, which he pointed out were speculative activities in the market and increased appetite for foreign exchange. He added that the administration addressed the surface issues instead of tackling the underlying reasons for the crisis.

He stated that prohibiting 46 products would not reduce the demand for foreign exchange or steady the local currency. Rather, it could result in monopolistic situations as importers exit the market, causing product scarcity and increased costs.

Banned items made up approximately 11% of overall imports in 2025 yet generated more than 38% of the customs and tax income gathered at port facilities, according to Salih, who cautioned that a decline in such revenue could increase the budget shortfall.

Salih further cautioned that the limitations would push illegal trading and trafficking across Sudan's weakly controlled frontiers to satisfy economic needs. He claimed that the prohibition serves just a limited number of individuals, generating income at the cost of buyers and the national budget.

According to data collected by specialist market departments on May 24, Salih stated that prices have increased significantly following the implementation of the ban. Local cement costs went up by 22 percent, Egyptian pottery by 42 percent, rice by 98 percent, and Egyptian instant noodles by 54 percent.

He attributed the current price hikes to a psychological reaction as traders and consumers stockpile goods in anticipation of shortages. Salih warned that steeper price increases are likely as supply scarcity worsens and market competition decreases.

Additionally, Salih pointed out that the currency rate declined from approximately 4,100 pounds for one dollar at the time of the announcement to roughly 4,770 pounds on Wednesday, which he used as proof that the restriction did not succeed in stabilizing the foreign exchange sector.

Salih once again urged the government to reassess the policy and implement actions aimed at addressing fundamental economic disparities instead of limiting commerce. He stated that the chamber would remain against the decision to safeguard market balance and national income.

The interim government announced Presidential Order Number 174 from 2026 in April aimed at prohibiting the entry of high-end and unnecessary goods.

The prohibition stemmed from suggestions made by a group assigned to halt the drop in the local currency, directives issued by the Senior Economic Panel, and an analysis provided by the Department of Industry and Commerce.

The regulation applied to over 40 products, such as bottled milk, excluding powdered and baby formulas, certain processed goods, cookies, candies, jellies, mineral and fizzy drinks, pre-mixed fruit beverages, pottery, and granite.

As per the Central Bank of Sudan's 2025 foreign trade data report, Sudan's exports reached $2.64 billion, whereas imports amounted to $6.49 billion, leading to a trade gap of $3.86 billion.

Supplied by SyndiGate Media Inc. ( Syndigate.info ).

U.S. Inflation, Iran Tensions Send Global Bond Yields Soaring

The extended conflict in Iran and growing worries about inflation are causing instability in worldwide bond markets. The U.S. consumer price inflation rate has hit its highest point in three years, while increased military conflicts between the U.S. and Iran have caused the U.S. 30-year Treasury yield to surpass the key threshold of 5% per annum. In South Korea's bond market, government bond rates have also approached their annual peak, as experts observe that investors are anticipating higher bond yields (which mean falling prices).

◇ U.S. Inflation Increases at Highest Rate in Three Years

As reported by the U.S. Department of Labor on the 10th, the U.S. Consumer Price Index (CPI) climbed 4.2% in May when compared to the same period in the prior year. This represented a rise from April's 3.8% growth and was the largest increase seen since 2023. On a monthly basis, prices went up by 0.5%, meeting analysts' predictions. Nevertheless, the core CPI, a key indicator watched by the Federal Reserve in shaping interest rate policies, grew just 0.2% over the past month, below the expected 0.3%. Certain specialists remarked, "The most severe outcome has been prevented."

Although the core CPI saw a smaller increase than expected, which briefly caused U.S. bond yields to fall, rising tensions in the Middle East changed this direction. On the same day, U.S. President Donald Trump posted on Truth Social: "We will attack Iran more severely," leading Iranian President Masoud Pezeshkian to adopt an equivalent position, sparking renewed worries about possible warfare. As reported by Investing.com on the 11th, the U.S. 3-year and 10-year Treasury yields increased by 0.036 percent and 0.041 percent compared to the prior day, hitting annual rates of 4.213% and 4.569%. The 30-year Treasury yield reached 5.044%, crossing above the significant 5% level. An individual from the finance sector remarked, "Ongoing anxieties over inflation, along with potential disruptions in oil supplies due to conflicts involving Iran, are causing pressure on what were once considered secure investments like U.S. Treasuries. Previously, when people avoided risks, they invested in U.S. bonds, thus reducing their yields. However, now factors such as energy prices and U.S. budget shortfalls are making longer-term bonds 'assets for sale.'"

◇South Korean Government Bond Yields Approaching Yearly Peaks

Rising inflation worries and tensions in the Middle East are causing instability in South Korea's bond market. Bond yields in Seoul have reached near-record highs this year, as global interest rate increases continue to push them higher. As reported by the Korea Financial Investment Association, on the 10th, the 3-year government bond yield was recorded at an annual rate of 3.881%, while the 10-year yield came in at 4.273%. These figures are close to their yearly maximums of 3.94% and 4.348%, respectively. Meanwhile, the volume of stock loan deals betting against rising bond prices has hit a new all-time peak. On January 2nd, the total value stood at 182.538 trillion Korean won, but by the 10th, it had climbed to 234.6373 trillion—showing growth of more than 52 trillion Korean won within just six months.

Another element contributing to rising bond yields is the Bank of Korea's decision to raise interest rates. Governor Shin Hyun-song has highlighted the importance of increasing rates, as financial markets anticipate the likelihood of two hikes occurring within the current year. Kim Jin-hee, an analyst from Shinhan Securities, stated, "Taking into account the continued positive surprises in exports and the initial phase of inflationary pressures, tight monetary policy is expected to remain in place through at least the third quarter. Should discussions between the United States and Iran advance during the latter part of the second quarter or the beginning of the third, stable oil prices might briefly reduce market rates; however, a long-term decline seems improbable."

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