Sudanese Pound Collapses Triggering Widespread Shop Closures

The Sudanese Pound has experienced a severe collapse, trading above 8,400 against the US Dollar on the parallel market. This represents a 40% increase in three weeks and a roughly 14-fold increase since April 2023. The depreciation has extended to other major currencies, with the UAE Dirham and Saudi riyal surpassing 2,050 and 2,025 pounds, respectively.

Kamil Idris, the Prime Minister of Sudan, leads the National Economic Management Committee, which approved a program to increase local production, expand discounted-sales markets, and tighten import controls via the Baladna platform to stabilize the exchange rate. Despite these efforts, the currency crash has triggered sharp price hikes for basic goods. A 50-kilogramme sack of sugar rose from approximately 380,000 to 470,000 pounds, and critical shortages of diesel have emerged.

Economic instability has led to the closure of numerous bakeries and most shops in cities including Khartoum, Port Sudan, and Wad Madani. Traders have ceased operations while waiting for the market to stabilize. Economists attribute the volatility to the ongoing war and government purchases of foreign currency for fuel and military equipment. While the Bank of Khartoum and Omdurman National Bank maintain official rates between 3,750 and 4,200 pounds per dollar, the parallel market continues to drive the crisis.