The Sudanese government’s recent push to introduce new banknotes and require citizens to open bank accounts has sparked significant debate. The initiative which was hailed by the Finance Minister Jibril Ibrahim to improve the banking sector and by extension, the army’s war effort has drawn criticism of excluding millions from the financial system and deepened divisions in the country.
War-Torn Economy and a Beleaguered Currency
Sudan’s two-year conflict between the army and the paramilitary Rapid Support Forces (RSF) has left the nation’s economy in shambles. The Sudanese pound has lost three-quarters of its value, and half the population faces hunger. To combat the economic turmoil, the government introduced new 500 ($0.20) and 1,000 ($0.50) pound notes in December, mandating that citizens deposit old notes into banks before accessing limited withdrawals.
This policy, unlike previous currency exchanges, has forced cash from an overwhelmingly unbanked population into the formal financial system, a move aimed at making funds looted by the RSF worthless.
Finance Minister Declares Success
Finance Minister Jibril Ibrahim hailed the initiative as a success, despite withholding specific figures on deposited sums. “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 told Reuters.
The war has strained government finances, with RSF forces looting banks and disrupting farming activities. Ibrahim highlighted Sudan’s gold production—64 tonnes last year—with official exports accounting for about half, suggesting a decrease in looted gold under army control.
A central bank source revealed that the new notes were printed in Russia, a country with vested interests in Sudan’s ongoing conflict.
Criticism of Exclusion and Economic Splintering
However, critics argue that the currency overhaul has effectively split the nation. Millions in RSF-controlled areas—nearly half the country—are excluded from the banking system, with their old savings rendered worthless. The RSF has condemned the move as illegal and cited it as justification for forming a parallel government in the regions it dominates.
In these areas, residents rely on old notes, electronic transfers, U.S. dollars, and even Chadian rials for transactions. Meanwhile, in the army-controlled city of Port Sudan, frustrations have also boiled over, with residents protesting the new banknotes.
Challenges for Ordinary Sudanese
For many Sudanese, the transition to formal banking has been fraught with obstacles. Traders report dampened sales as countless citizens lack the identification documents or smartphones needed to open accounts or perform online transfers.
“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),” lamented fishmonger Ali Moneeb.
Bottom Line: A Divided Future
While the Sudanese government touts the currency policy as a financial and strategic win, its broader impacts paint a picture of exclusion and hardship for millions. As the war grinds on, this controversial move further deepens the fractures within a nation already on the brink.
