Sudanese Pound Collapses Against Dollar and Major Currencies Amid Deepening Economic Crisis

The Sudanese Pound continues to experience a sharp and alarming decline against major foreign currencies, reflecting the country’s worsening economic crisis that has persisted since the outbreak of armed conflict between the Sudanese Army and the Rapid Support Forces (RSF) in April 2023. This financial deterioration has fueled inflation, reduced purchasing power, and deepened the hardship for millions of Sudanese citizens.

Sudanese Pound vs. Major Foreign Currencies

In the parallel (black) market, exchange rates have soared, underscoring the rapid depreciation of the Sudanese Pound. As of the latest update:

• US Dollar: ~2,730 SDG

• Euro: ~3,067.41 SDG

• British Pound: ~3,640 SDG

These figures represent a significant spike, highlighting the ongoing collapse of the local currency and the absence of any effective financial intervention.

Sudanese Pound vs. Arab Currencies

The depreciation has also extended to regional currencies. Exchange rates against key Arab currencies include:

• Saudi Riyal: ~728 SDG

• UAE Dirham: ~743.86 SDG

• Qatari Riyal: ~747.94 SDG

• Omani Rial: ~7,184 SDG

• Bahraini Dinar: ~7,184 SDG

• Kuwaiti Dinar: ~8,806.45 SDG

• Egyptian Pound: ~53.95 SDG

These rates demonstrate the widening gap between the Sudanese economy and more stable Arab financial systems, further straining import costs and local market prices.

Key Factors Behind the Decline

Several factors have contributed to the collapse of the Sudanese Pound:

• Ongoing Conflict: The civil war between the army and RSF has paralyzed much of the state infrastructure, worsening investor confidence and halting productive sectors.

• Foreign Currency Shortage: A critical lack of foreign reserves has pushed demand into the black market, driving up exchange rates.

• Lack of Oversight: The absence of effective regulatory control has led to severe discrepancies in currency values across different regions, with some cities experiencing over 100 SDG variation.

Warnings and Outlook

Economic experts warn that if current trends continue, Sudan may enter a phase of economic freefall with devastating social consequences. Likely outcomes include:

• Rising poverty levels as salaries lose value.

• Hyperinflation due to soaring prices of goods and services.

• Further erosion of public trust in the banking and financial systems.

• Increase in crime and social instability fueled by unemployment and economic despair.

While there may be short-term plateaus in exchange rate fluctuations, economists agree that without a political resolution and strategic financial reforms, the Sudanese Pound will continue its downward spiral.