Sudan’s economic crisis is worsening as the national currency loses value in army-controlled territory, pushing essential goods further beyond the reach of households already struggling with the consequences of more than three years of war.
The Sudanese pound was trading at about 7,500 to the US dollar on the black market on Tuesday, compared with roughly 4,100 in May.
Before the conflict, the currency traded around 600 pounds to the dollar.
The depreciation means the currency has lost nearly half its value in army-held areas since the beginning of the summer.
Food Prices Rise as Currency Weakens
The currency crisis is feeding directly into household expenses.
Sudan depends on imported goods including fuel and wheat, and importers frequently require dollars purchased on the parallel market.
As the pound weakens, those imports become substantially more expensive.
Reuters reported that a litre of cooking oil in one market had risen from 17,000 pounds to 23,000 pounds in just one week, while some traders said sales had fallen sharply.
War Divides Economy
Sudan’s economic geography has also been transformed by the conflict between the armed forces and the Rapid Support Forces.
Important gold, livestock, oilseed and gum arabic-producing areas remain under different systems of control, complicating government efforts to generate foreign exchange and restore economic activity.
The official gold sector reported 70 tonnes of production last year, but only 14.7 tonnes appeared as exports in central bank figures, Reuters reported.
About five million of the estimated 14 million people displaced during the conflict have returned home, increasing demand in communities where infrastructure and economic activity remain severely damaged.
Without greater stability, foreign-exchange availability and restoration of productive activity, Sudan’s currency crisis risks adding another layer to an already severe humanitarian emergency.
