The Sudanese government’s introduction of new banknotes has sparked controversy, highlighting the nation’s deepening economic and political crisis. The initiative, which began in December, requires citizens to deposit old notes in banks to receive the new 500 and 1,000 Sudanese pound notes. Finance Minister Jibril Ibrahim stated that this move has boosted bank deposits and supported the army’s war efforts against the Rapid Support Forces (RSF). However, critics argue that it has marginalized millions, exacerbating economic and social divides.
The ongoing two-year war between the army and the RSF has devastated Sudan’s economy, leading to a dramatic depreciation of the currency, which has lost three-quarters of its value. The conflict has also plunged nearly half of Sudan’s population into food insecurity. By funneling cash from an unbanked society into the formal banking system, the government aims to render funds held by the RSF obsolete. Ibrahim deemed the initiative a success, though he did not disclose the total amount deposited.
“This helps the banking sector, and when you help the banking sector, you help the state to finance projects, including the war effort,” Ibrahim said in an interview with Reuters. The move is seen as an attempt to reclaim control over financial resources, especially after the RSF looted dozens of banks and disrupted farming activities.
Despite these intentions, the policy has drawn criticism for excluding millions of Sudanese living in RSF-controlled territories, effectively splitting the country’s financial system. Residents in these areas reportedly continue using old notes, electronic transfers, U.S. dollars, and Chadian rials. The RSF, labeling the currency exchange illegal, cited the move as a justification for establishing a parallel government.
Even in army-controlled Port Sudan, the process has faced resistance. Traders complain of reduced sales due to a lack of identification documents required to open bank accounts, while others struggle without smartphones for online transactions. Fishmonger Ali Moneeb lamented the difficulties in accessing cash, stating, “You might spend a whole day to get 50,000 pounds ($20) or 100,000 ($40).”
As Sudan grapples with these challenges, the new banknotes symbolize the widening rift in a country torn by war and economic instability.
