The Sudanese government’s recent move to introduce new currency notes and require citizens to open bank accounts has increased bank deposits and supported the army’s war effort, according to Finance Minister Jibril Ibrahim.
However, critics argue that the policy has excluded millions of people from the financial system.
Sudan’s two-year conflict between the army and the paramilitary Rapid Support Forces (RSF) has devastated the nation’s economy, devaluing its currency by 75% and leaving half the population facing hunger.
The government’s new policy, launched in December, mandates that old banknotes be deposited in banks to exchange for new 500-pound ($0.20) and 1,000-pound ($0.50) notes, while daily withdrawals are restricted.
This move aimed to render funds looted by the RSF worthless, Ibrahim said, though he did not disclose the total amount deposited.
“This strengthens the banking sector, which in turn supports the state in financing projects, including the war effort and productive activities,” Ibrahim told said.
The army-aligned government has faced significant challenges in paying salaries and securing essential goods like medicine since RSF forces looted banks and disrupted farming operations early in the war.
Ibrahim also highlighted that Sudan produced 64 tonnes of gold last year, with about half officially exported, suggesting reduced looting of gold in army-controlled areas.
A source at Sudan’s central bank revealed the new currency was printed in Russia, one of several foreign powers involved in the conflict.
Critics, however, argue that the policy has effectively excluded millions living in RSF-controlled areas from the formal financial system, rendering their savings worthless and deepening the country’s divide.
The RSF has called the policy illegal and cited it as a justification for forming a parallel government in its territories.
In RSF-held regions, residents continue to use the old currency, electronic transfers, U.S. dollars, and even Chadian rials. Meanwhile, in the army’s wartime capital, Port Sudan, some residents have protested the new banknotes.
Traders complain that the system has hurt sales, as many people lack the identification required to open bank accounts or smartphones for digital transactions.
“All our capital is locked in the bank. When we need cash later, they won’t give it to us. Sometimes, we spend an entire day trying to withdraw 50,000 pounds ($20) or 100,000 pounds ($40),” said Ali Moneeb, a fishmonger in Port Sudan.
Reuters/Patience Ameh
Comments are closed.