Sudan is grappling with a worsening cash crisis following the government’s sudden decision to replace old banknotes with new currency. The move, aimed at curbing counterfeit currency and addressing the country’s growing black market, has left citizens struggling to access cash for basic needs, further deepening the nation’s economic woes.
The Central Bank of Sudan announced the banknote switch in late December 2024, giving citizens a limited window to exchange old currency for newly designed notes. The government justified the decision as a measure to tackle widespread counterfeiting and regain control over the informal economy, which has been exacerbating inflation and destabilizing the financial system.
However, logistical challenges, coupled with limited public awareness, have resulted in chaos. Long queues have formed outside banks, with citizens complaining of delays in exchanging old notes for new ones. Many report being turned away due to insufficient cash supplies at banks. Rural areas, where banking infrastructure is sparse, have been hit hardest, with residents traveling long distances only to find banks closed or out of cash.
I’ve been waiting in line for three days, but every time I get to the counter, they tell me there’s no money left, said Ahmed Musa, a resident of Khartoum. How are we supposed to survive if we can’t access our own money?
The currency change comes at a time when Sudan is already facing severe economic challenges, including skyrocketing inflation, a depreciating currency, and the lingering effects of ongoing conflict between the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF). With inflation rates exceeding 300%, the cost of food and basic goods has become unaffordable for many households.
Experts have criticized the timing and execution of the currency switch, arguing that it exacerbates existing economic hardships. This move could have been effective if implemented gradually and with adequate preparation, said Dr. Samira Hassan, an economist at the University of Khartoum. Instead, it has thrown the financial system into disarray, further eroding public trust in the government’s ability to manage the economy.
The cash crunch has also led to a surge in black market activity, with traders charging exorbitant fees to exchange old notes for new ones. Digital payment systems, which could have provided an alternative, are underdeveloped in Sudan, leaving many citizens reliant on cash transactions for their daily needs.
The government has acknowledged the challenges but insists that the currency change is necessary to stabilize the economy in the long term. Finance Minister Jibril Ibrahim urged citizens to remain patient, assuring them that measures are being taken to address cash shortages and ensure smooth distribution of the new notes.
International observers have expressed concern about the broader implications of the crisis. Sudan’s economic instability has already strained humanitarian efforts, with millions of people in need of assistance due to conflict and displacement. The cash crunch threatens to worsen the situation, potentially leading to increased unrest.
Meanwhile, protests have erupted in several cities, with citizens demanding better management of the currency switch and immediate relief from the cash shortages. We are tired of promises. The government needs to act now or risk more chaos, said Fatima Abdallah, a protester in Omdurman.
As the cash crisis continues, analysts warn that the situation could have lasting repercussions on Sudan’s fragile economy and social stability. The government’s ability to navigate this challenge will be critical in determining whether the currency switch achieves its intended goals or becomes another blow to a nation already grappling with immense challenges.
