Banking Expert Explains Causes of the Sudanese Pound’s Collapse
Banking expert Waleed Dalil stated that the decline in the value of the Sudanese pound represents a severe economic challenge that directly affects the daily lives of all citizens. He noted that inflation has reached record levels due to the ongoing conflict, which has significantly damaged infrastructure and financial institutions.
Speaking to Al-Ahdath, Dalil attributed the pound’s deterioration primarily to the halt in production and the collapse of exports.
He explained that key productive sectors—including agriculture, industry, and mining—have been nearly paralyzed in many areas due to instability and disruptions in supply chains. This has resulted in a near-total disappearance of Sudanese exports that traditionally generated foreign currency, such as gold and agricultural products, while increasing reliance on imports of essential goods, thereby continuously driving demand for U.S. dollars.
Dalil also pointed to declining remittances and external assistance. He noted that remittances from Sudanese expatriates through official channels have fallen by more than 70 percent because of disruptions affecting the banking system and the Central Bank during various periods.
He added that the suspension of international support, loans, grants, and economic assistance—which previously helped stabilize foreign exchange reserves—has further worsened the situation.
Another major factor, he said, is the growing fiscal deficit and the unbacked printing of currency. To finance rising government expenditures and manage emergency crises, authorities have increasingly relied on deficit financing by printing additional currency without corresponding backing from production or gold reserves. This has expanded the money supply and sharply reduced the purchasing power of the Sudanese pound.
Dalil further identified the expansion of the parallel market (black market) as a key driver of currency depreciation. Due to the inability of official banks to provide sufficient foreign exchange for importers and citizens, financial activity has shifted almost entirely to the parallel market, where exchange rates are heavily influenced by speculation and panic buying aimed at meeting personal and commercial needs.
