Currency exchange crisis hits Sudan

Sudan has been affected by a currency exchange issues concerning revenues from its oil resources.

The north and south states signed a peace accord five years ago, in which they agreed to split revenues from the lucrative industry.

Control of the ports, refineries and payments was assigned to the north, while the bulk of the oil lies in the south.

However, the south has now accused the north of switching payments of oil revenue from US dollars to the local currency.

Peter Marshall, the BBC's correspondent in the southern capital of Juba, has said that this has meant that the south is deprived of a major source of foreign currency, thus restricting the goods it can import.

Furthermore, southern finance minister for the country David Deng Athorbei, has now accused the north of attempting to weaken the country's economy.

In a statement he said: "As a result of this action, the foreign exchange reserves of the Bank of Southern Sudan have been seriously depleted.

"The Bank of Southern Sudan is unable to supply banks and foreign exchange bureaux with foreign currency and meet the foreign exchange needs of the government of Southern Sudan."

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Posted by Eleanor Ward