Sudanese Pound Collapse… Citizens Suffering from Soaring Prices

Khartoum – Rahab Abdullah

The Sudanese pound has plummeted to its lowest level in history, reaching 900 pounds, close to a thousand pounds last week, before the central bank took measures that slightly increased its value. This has raised questions about the real reasons behind this significant decline, especially as it has led to a surge in commodity prices and rent amid citizens’ displacement, non-payment of salaries, and the halt of private sector activities.
Some argue that one of the main reasons is the increase in bank transfers through banking applications, prompting the central bank to set a daily limit on transfers recently. However, economic experts believe that the reason lies in Sudan’s halt in exports due to the war and increased imports, following the cessation of consumer goods factories in Khartoum after being looted and destroyed during the 15 April conflict between the Sudanese army and opposition forces.
Reports from Sudan Event suggest that companies working for the Rapid Support Forces militia purchase large quantities of dollars from the parallel market to smuggle them abroad or import fuel.
Bankers attribute the rise in the dollar’s price to speculation and treating it as a commodity, along with increased demand due to travel outside Sudan or fear of currency devaluation. In his conversation with Sudan Event, a banking expert, Dr. Mohamed Abdelaziz mentioned that there are no logical reasons for the decline. Still, he pointed out that the cessation of exports is the main reason for the dollar shortage, leading to its price increase, with each merchant setting their own prices arbitrarily without relying on logic.