The Sudanese pound continued its sharp decline against foreign currencies, worsening the financial plight of millions amid the ongoing conflict.
Dealers in the parallel market reported on Sunday that one US dollar was exchanged for 2,100 pounds, the Saudi riyal for 560 pounds, and the UAE dirham for 572 pounds. The pound’s decline is driven by increased demand for foreign currencies amid scarce supply.
A black market dealer revealed he ceased operations to avoid losses, as most Sudanese now seek foreign currencies due to a lack of local demand. The Bank of Khartoum offered to buy dollars at 1,860 pounds and sell them at 1,873 pounds, while the Saudi riyal was offered for purchase at 501.49 pounds and sold at 505.25 pounds.
The parallel market has shifted from Khartoum to Port Sudan, where the army now manages national affairs. The weakening pound further erodes purchasing power, with many Sudanese relying on remittances due to disrupted livelihoods, including agriculture.
Economic expert Mohamed Al-Nayer criticized the government’s inaction, urging measures such as withdrawing large pound denominations, restricting luxury imports, boosting exports, rationalizing public spending, and increasing revenue.
Finance Minister Gibril Ibrahim reported a state revenue drop of over 80% on February 26. Al-Nayer emphasized that 95% of the money supply held by the public fuels the parallel currency market, necessitating urgent intervention.
Before the conflict between the army and the Rapid Support Forces began on April 15, 2023, the exchange rate was 570 pounds to the dollar.
