Sudan alters banknotes, increasing revenue but attracting criticism

According to Finance Minister Jibril Ibrahim, the Sudanese government’s decision to issue new banknotes and force citizens to register bank accounts has increased bank deposits and, with them, the army’s war effort. However, some critics claim that this has left millions out of the financial system.

The economy has been ruined by the army’s two-year conflict with the paramilitary Rapid Support Forces; the currency has lost three-quarters of its value, and half of the population is now hungry.

The new 500 ($0.20) and 1,000 ($0.50) pound notes require people to deposit their old notes in a bank before they may withdraw a set amount each day, which brings money into the system from a society that is mostly unbanked. This is different from past currency exchanges.

Although he did not provide an estimate of the number of Sudanese pounds deposited, Ibrahim claimed the initiative, which was started in December with the specific goal of rendering money looted by the RSF worthless, had been successful.

“This helps the banking sector, and when you help the banking sector, that helps the state to finance projects, including the war effort and productive activities,” Ibrahim declared in an interview with Reuters this week.

The army-aligned government has found it difficult to pay salaries and finance necessities like medicine since the start of the war, when RSF soldiers broke into dozens of banks and stopped farming.

The percentage of stolen gold in army-controlled areas has decreased, according to Jibril, who stated that the nation produced 64 tons of gold last year and officially exported about half of that amount.

Russia, one of several foreign nations that have interfered on both sides, printed the new notes, according to a source at Sudan’s central bank.

The decision, according to critics, has separated the nation by excluding the millions of people who still live in the 50% of the country that is under RSF rule from the financial sector and making their money worthless.

The RSF claims the action is unlawful and points to it as one of the justifications for setting up a parallel administration in areas under its authority.

People who live in RSF-controlled areas report using the old notes in addition to electronic transfers, US dollars, and, in certain locations, Chadian rials.

However, some citizens have voiced their disapproval of the new banknotes even in Port Sudan, the army’s capital during the battle.

Because more individuals lack smartphones for online transfers and many still lack the identity documents required to create a bank account, traders claim the process has hurt sales.

“The bank has all of our capital deposited there. They won’t offer you money later on when you need it. A day might cost you 50,000 pounds ($20) or 100,000 ($40), according to fishmonger Ali Moneeb.