In a bold move to stabilize its economy and bolster its war effort, Sudan’s government has introduced new banknotes, requiring citizens to deposit old notes into banks before accessing limited daily withdrawals. While the initiative has significantly boosted bank deposits, critics argue it has left millions excluded from the financial system and deepened divisions in the war-torn nation.
The currency swap, launched in December, aims to undermine the paramilitary Rapid Support Forces (RSF) by rendering their looted funds obsolete. Finance Minister Jibril Ibrahim hailed the policy as a success, saying it has strengthened the banking sector, enabling the state to finance critical projects, including the military campaign and essential services.
“This helps the banking sector, and when you help the banking sector, that helps the state to finance projects, including the war effort and productive activities,” Ibrahim said.
Sudan’s two-year conflict between the army and the RSF has devastated the economy, devaluing the currency by 75% and pushing half the population into hunger. The RSF’s looting of banks and disruption of farming activities has further strained resources, leaving the government struggling to pay salaries and import essential goods like medicine.
To counteract these challenges, the government’s initiative requires individuals to open bank accounts to access the new 500-pound ($0.20) and 1,000-pound ($0.50) notes. This measure has drawn previously unbanked funds into the formal financial system.
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Sudan produced 64 tonnes of gold last year, with about half officially exported. Ibrahim suggested that looted gold in army-controlled areas had decreased, signaling progress in economic stabilization.
Despite the reported benefits, the policy has sparked criticism for excluding millions in RSF-controlled territories, effectively splitting the country’s financial system. In these areas, residents continue to rely on old notes, electronic transfers, U.S. dollars, and even Chadian rials. The RSF has declared the currency overhaul illegal, citing it as grounds for establishing a parallel government.
Even in army-controlled regions like Port Sudan, discontent is brewing. Many citizens lack the identification needed to open bank accounts or the smartphones required for online transactions, limiting their access to funds. Traders complain that the policy has dampened sales and created logistical hurdles.
“All of our capital is deposited in the bank. When you need cash in the future, they won’t give you. You might spend a whole day to get 50,000 pounds ($20) or 100,000 ($40),” said fishmonger Ali Moneeb.
As Sudan grapples with the economic fallout of its ongoing conflict, the new currency policy underscores the complexities of governance in a divided nation. While it strengthens the army’s financial position, the exclusion of millions from the formal economy raises concerns about equity and the long-term viability of such measures.
For now, the policy’s success in stabilizing certain sectors remains overshadowed by the broader humanitarian and economic challenges facing Sudan.