The Sudanese government has introduced new banknotes and mandated the largely unbanked population to open bank accounts as part of a strategy to stabilize its struggling economy.
Launched in December, the initiative is designed to nullify funds looted by the paramilitary Rapid Support Forces.
Finance Minister Jibril Ibrahim stated that the initiative has been successful, although he did not provide specific figures regarding the amount of Sudanese pounds deposited.
Sudan has been caught in a two-year conflict between the army and the RSF, which has devastated the economy, devalued the currency by three-quarters, and left half of the population facing hunger.
Ibrahim stated that the government’s move has significantly boosted bank deposits. “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 told Reuters in an interview.
To obtain the new 500-pound and 1,000-pound banknotes, Sudanese citizens must deposit their old notes in banks, with daily withdrawal limits in place.
This move seeks to integrate funds from the largely unbanked population into the formal financial system.
Since the conflict began, RSF soldiers have looted several banks and hindered agricultural activities, making it challenging for the army-backed government to pay salaries and provide essential goods such as medicine.
Ibrahim stated that Sudan produced 64 tonnes of gold last year, with about half officially exported.
He noted that this suggests the proportion of looted gold in army-controlled areas has decreased.
Residents in RSF-controlled areas continue to use old notes, electronic transfers, U.S. dollars, and, in some regions, Chadian rials.
In Port Sudan, the army’s wartime capital, some residents have protested against the new banknotes.
Traders have reported a decline in sales, as many people still lack identification papers needed to open bank accounts and smartphones for online transfers.
“All of our capital is deposited in the bank. When you need cash in the future, they won’t give you. You might spend a whole day to get 50,000 pounds ($20) or 100,000 pounds ($40),” said fishmonger Ali Moneeb.
