Warnings About the Dangers of Printing High-Denomination Currency
Sudan Events – Rahab Abdullah
Banking expert Walid Daleel has warned of the risks associated with issuing a new, high-denomination Sudanese currency announced by the Central Bank. In an interview with Events, Daleel described the move as dangerous from an economic perspective, predicting that it would lead to a decline in the use of smaller denominations (500, 200, and 100 pounds), which in turn would likely fuel inflation and drive up prices of low-value goods.
Daleel noted that if the Central Bank had instead activated Visa card options and facilitated money transfers between banks, it could have saved millions of dollars that were spent on printing the new currency. He expressed concern that this step may ultimately depreciate the Sudanese pound, with severe consequences for the economy. According to Daleel, this depreciation would erode the middle class, pushing it toward poverty, while the poor would face even harsher conditions.
He criticized the government for not yet presenting practical solutions to mitigate losses and transition to more sustainable approaches. In many developed nations, he noted, governments work to reduce cash circulation and shift to electronic money and bank accounts due to the costs associated with transporting, reprinting, and securing cash from theft and counterfeiting. He suggested that Sudan could adopt similar measures, such as activating banking applications to minimize cash transactions, raising transfer limits, and reintroducing mobile phone-based balance transfers as feasible alternatives to printing new currency.
