Sudan's New Currency Strategy Sparks Debate Amid War Efforts

Sudan's government introduced new banknotes, mandating bank account openings, boosting deposits for war efforts against the RSF. Critics argue millions remain excluded from the financial system, exacerbating economic issues. While the policy aims to undermine RSF, it splits the nation's financial integration, impacting daily life and trade.

The Sudanese government's roll-out of new banknotes has driven an increase in bank deposits, which are now, according to Finance Minister Jibril Ibrahim, aiding the army's ongoing war efforts. However, the currency exchange policy, seen as a blow to the paramilitary Rapid Support Forces (RSF), is drawing criticism for sidelining a vast number of citizens from the financial system.

By depositing old notes in banks, including the newly introduced 500 and 1,000-pound notes, the initiative seeks to make RSF-looted funds worthless. While the strategy benefits the banking sector by increasing funds for state projects, its impact leaves millions in RSF-controlled regions excluded and their savings rendered useless, contributing to further division.

Residents in such areas find themselves using a mix of old notes, U.S. dollars, and other currencies due to restrictions. This financial transformation, while boosting government reserves, has amplified economic difficulties, dampening trade due to logistical challenges associated with the process.

(With inputs from agencies.)