The Sudanese pound fell to new record lows against major foreign currencies on Monday, as a worsening cash shortage and growing reliance on digital banking transactions fuelled volatility in the parallel market.
The US dollar climbed above 5,700 Sudanese pounds, while the UAE dirham reached around 1,600 pounds and the euro rose to approximately 6,400 pounds.
Exchange rates varied between traders, partly because of the limited availability of physical cash. The shortage has pushed more transactions onto banking applications, where transfer-based exchange rates often differ from cash prices.
A currency trader, speaking anonymously to Assayha, attributed the pound’s continued decline largely to the cost of financing Sudan’s war.
He said the weakening currency was placing additional pressure on households already struggling with rising prices and deteriorating living conditions.
The trader added that falling exports and a shortage of foreign currency in the parallel market had further strengthened demand for the dollar and other hard currencies.
An economic analyst said recent decisions affecting the validity of certain banknote denominations, alongside changes to official exchange rates, had encouraged individuals and businesses to purchase foreign currency as a hedge against the pound’s depreciation.
The adjustment of the customs exchange rate to 3,517 pounds per dollar has also raised the cost of imported goods, contributing to higher inflation across local markets.
Sudan’s currency crisis has intensified as the conflict continues to disrupt trade, reduce production and weaken government revenues, leaving the economy increasingly dependent on an unstable parallel exchange market.
