Sudan Edges Closer to Currency Split

A 1,000-pound note print (X)
A 1,000-pound note print (X)
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Sudan Edges Closer to Currency Split

A 1,000-pound note print (X)
A 1,000-pound note print (X)

Sudan’s division is no longer confined to geography, administration and public services. It has begun to touch one of the state’s most sensitive institutions.

New 1,000- and 500-pound banknotes, issued by the Central Bank of Sudan in May 2022, have been observed circulating in areas controlled by the Rapid Support Forces, raising questions about the future of the national currency's unity and the central bank’s ability to maintain authority over the country’s cash supply.

The RSF-aligned government, based in Nyala, has allowed the circulation of banknotes bearing the signature of former Central Bank of Sudan governor Hussein Yahia Jangol after reappointing him to the same post as governor of what it calls a parallel central bank.

The Nyala government has banned other denominations bearing the signature of Burai al-Siddiq, who succeeded Jangol at the central bank. Meanwhile, Mohamed Hasan al-Taishi, prime minister of the parallel government, has announced monetary and banking policies that he said are aimed at building an integrated financial system.

Asharq Al-Awsat has learned from a source whose identity has not been definitively established that the circulation of new banknotes in RSF-controlled areas is not the first such case. It remains unclear whether the notes had been stored previously or were newly printed.

Bankers and economists say the danger lies not in the banknote itself, but in the authority controlling its issuance and circulation, and in the possible impact on the effectiveness of economic policy, confidence in the national currency and the stability of the financial system.

Experts say the effectiveness of monetary policy depends mainly on the Central Bank of Sudan’s ability to exercise authority over the money supply, manage liquidity, ease pressure on the foreign exchange market, control inflation and support exchange-rate stability.

If cash circulates outside that authority, measuring the money supply becomes more complicated. It also weakens the monetary authorities’ ability to fight inflation, manage liquidity, contain pressure on the exchange rate, maintain price stability and protect the financial system.

According to data released by the Central Bank of Sudan in April, money supply growth stood at 27.3%, reflecting challenges in liquidity management, especially given the exceptional conditions the country faces.

Experts say the circulation of banknotes in RSF-controlled areas further complicates measuring the money supply, particularly the component of currency circulating outside the banking system.

It also reduces the accuracy of monetary indicators and weakens the design and implementation of monetary policy, leading to lower confidence in the national currency and limiting the ability of institutions to enforce economic policies uniformly across the country.

According to the Central Bank of Sudan’s economic and financial review issued last December, currency held by the public accounted for about 97.4% of total currency in circulation, compared with only 2.6% held by commercial banks.

This high level of cash circulating outside the banking system points to the spread of direct cash transactions, limiting the banking sector’s ability to mobilize savings and making liquidity management more difficult.

Experts say any additional circulation of cash outside the central bank’s authority would deepen economic imbalances and obstruct the management of the money supply and the stability of the monetary and financial systems.

Informal economy

Recent studies indicate that Sudan’s informal economy accounts for about 60% of economic activity, a high level that limits the effectiveness of policy and weakens the state’s ability to measure and manage it.

Sudan’s economy still relies heavily on cash transactions compared with electronic payment methods. Despite recent developments in banking applications, financial inclusion and banking penetration remain below the required level. This strengthens the parallel economy and limits the efficiency of economic policies and their development into a “real” economy.

From the perspective of experts and bankers, the scenario of Sudan moving toward two banking systems appears technically and institutionally unlikely in the near term. Establishing an independent banking system requires more than issuing banknotes.

It requires a central bank capable of carrying out its core functions, including managing monetary policy, operating payment and settlement systems, supervising and regulating banks, managing reserves and establishing banking relationships with foreign correspondent banks. These requirements are difficult to meet under current conditions.

Financial bodies have warned that the continuation of the conflict could lead to the emergence of a parallel financial network carrying out banking functions informally, especially money transfers, cash movement and local trade financing.

Two central banks

Some countries that have suffered prolonged conflicts, such as Somalia, have seen the significant development of private money transfer networks that have effectively performed part of the banking system’s functions, while remaining outside the official regulatory framework. In Sudan’s case, the expansion of such channels could reduce the role of the formal banking sector.

Although Sudan does not yet have a parallel central bank exercising full institutional functions, as is the case in eastern Libya, this may depend on how long the conflict continues.

Sudan could gradually move closer to the Libyan model, with the Sudanese pound remaining one national currency legally, while multiple banknote issues circulate, acceptance levels vary from one region to another and partial cash markets emerge.

Sudanese authorities had previously ruled out the possibility that the RSF would print a new currency through companies or in countries subject to the global banking system.

Former Finance Minister Ibrahim Elbadawi told Asharq Al-Awsat that what happened was natural and expected, given the continuation of a fierce war for more than three years.

Elbadawi said the larger dilemma was the “insistence on war,” despite the difficulty of either side achieving a “decisive victory.” He added: “Most civil conflicts end in political settlements, and this is especially true of the Sudanese war.”

Tasis Prime Minister Mohamed Hasan al-Taishi said in press remarks that his government was moving ahead with monetary and banking policies to build an integrated financial system. He did not comment directly on reports about the introduction of new banknotes in Nyala.

Taishi said citizens in areas administered by his government had faced difficulties obtaining banking services and making money transfers due to conditions imposed by the war and institutional divisions.

The man leading the RSF-aligned government and the Tasis alliance renewed accusations against the army-led government, saying it had targeted citizens in areas under his control by “changing the currency,” draining markets of cash and using liquidity as a pressure card and a tool of war.

He said that all matters related to currency printing fall under the authority of the monetary authorities and relevant technical bodies. Any arrangements related to cash management or liquidity provision, he said, are carried out in accordance with carefully studied technical plans aimed at maintaining economic stability and meeting the needs of citizens and markets.

Taishi announced last May the creation of a “Transitional Currency Council,” defining its role as regulating monetary and banking affairs, managing currency circulation, supervising currency replacement programs and granting banking licenses in coordination with the governor of the Central Bank of Sudan in Nyala.

In recent months, the Tasis government established Future Bank, the first commercial bank to offer several banking services, including foreign currency transfers.

After the war broke out between the Sudanese army and the RSF in April 2023, banks went completely out of service in the western region of Darfur. This led to a severe liquidity shortage in markets and the deterioration of banknotes in circulation, while the Sudanese government continued to tighten controls at crossings to prevent any new currency from entering those areas.



Oil Falls as Trump Comments on Iran Talks Ease Supply Concerns

FILE PHOTO: A drone view shows the Portuguese flagged oil and chemical tanker ship CB Pacific docked at the Moran Shipping Agencies’ Citgo Petroleum Quincy/Braintree Terminal, March 18, 2026. REUTERS/Brian Snyder/File Photo
FILE PHOTO: A drone view shows the Portuguese flagged oil and chemical tanker ship CB Pacific docked at the Moran Shipping Agencies’ Citgo Petroleum Quincy/Braintree Terminal, March 18, 2026. REUTERS/Brian Snyder/File Photo
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Oil Falls as Trump Comments on Iran Talks Ease Supply Concerns

FILE PHOTO: A drone view shows the Portuguese flagged oil and chemical tanker ship CB Pacific docked at the Moran Shipping Agencies’ Citgo Petroleum Quincy/Braintree Terminal, March 18, 2026. REUTERS/Brian Snyder/File Photo
FILE PHOTO: A drone view shows the Portuguese flagged oil and chemical tanker ship CB Pacific docked at the Moran Shipping Agencies’ Citgo Petroleum Quincy/Braintree Terminal, March 18, 2026. REUTERS/Brian Snyder/File Photo

Oil prices fell on Friday as Middle East supply concerns eased after US President Donald Trump said the country would not attack Iran before US elections next month, amid productive talks to end their war that has disrupted global energy markets.

Brent crude futures dropped $1.68, or 1.61%, to $102.6 a barrel by 0819 GMT. US West Texas Intermediate (WTI) crude futures fell $1.31, or 1.43%, to $90.18, Reuters reported.

On a weekly basis, Brent prices are set to rise after settling 4% higher on Thursday, while WTI is set for a slight decline.

The US President’s pledge not to renew military attacks on Iran before the midterm elections along with China’s resumption of product exports were moving prices lower, PVM Oil Associates analyst Tamas Varga said.

Yet, the escalation of atrocities in ⁠the Arabian Gulf ⁠and around the Red Sea “has dashed hopes that swelling oil exports from the region will be sustainable and, as such, a protracted fall in oil prices in the foreseeable future seems implausible."

On Thursday, Trump said Washington was having "productive discussions" with Iran and said no attack was planned before the November 3 midterm congressional elections after media reports that he was considering an attack before then.

Iran's Tasnim news agency reported the same day ⁠that Foreign Minister Abbas Araqchi said Tehran is reviewing the US response to its proposal that would reopen the Strait of Hormuz within seven days.

"The prospect of easing tensions still needs to be reinforced by concrete progress in negotiations and improvements in shipping safety through the Strait of Hormuz," said XS.com analyst Linh Tran.

The US is still pressuring Iran economically to try to end the war, now in its eighth month, imposing sanctions on Thursday targeting individuals, networks and 17 vessels for transporting Iranian crude, oil products and petrochemicals.

Prices have been volatile this week as threats to shipping in the Gulf and the Strait of Hormuz, which carried shipments equal to about 20% of global ⁠oil and fuel ⁠before the war, have increased in October.

The Middle East war and the conflict between Russia and Ukraine have disrupted supplies of refined fuels such as gasoline, jet fuel and especially diesel fuel.

The oil market is also contending with Hurricane Isaias in the Gulf of Mexico. Because of the storm, producers there have shut in about 1.3 million barrels per day, or 62.9%, of current oil production as of Thursday, according to the US Marine Minerals Administration.

"This disruption provides additional support for oil prices, but the duration of its impact will depend on post-storm facility inspections and the pace of operational recovery," Tran said.


London Copper Rises on Supply Risks, China Buying

Stacks of copper cathodes sit inside Glencore's Canadian Copper Refinery in Montreal, Quebec, Canada on October 3, 2026. (Photo by ANDREJ IVANOV / AFP)
Stacks of copper cathodes sit inside Glencore's Canadian Copper Refinery in Montreal, Quebec, Canada on October 3, 2026. (Photo by ANDREJ IVANOV / AFP)
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London Copper Rises on Supply Risks, China Buying

Stacks of copper cathodes sit inside Glencore's Canadian Copper Refinery in Montreal, Quebec, Canada on October 3, 2026. (Photo by ANDREJ IVANOV / AFP)
Stacks of copper cathodes sit inside Glencore's Canadian Copper Refinery in Montreal, Quebec, Canada on October 3, 2026. (Photo by ANDREJ IVANOV / AFP)

London copper rose on Friday, recovering from the previous session's loss, as mine disruptions and buying in top consumer China supported prices.

Benchmark three-month copper on the London Metal Exchange was up 1.16% at $14,475 a metric ton by 0700 GMT, after dropping 1.15% in the previous session. It has climbed 1.52% so far this week, Reuters reported.

The most-traded copper contract on the Shanghai Futures Exchange fell 0.57% to 110,110 yuan a ‌ton, tracking overnight ‌losses in London.

"Copper is near record ‌levels, ⁠supported by supply-side issues," ⁠Daniel Hynes, senior commodity strategist at ANZ, said in a note.

The Yangshan copper premium <SMM-CUYP-CN> - a gauge of China's appetite for imported copper - ose to $125 a ton, its highest since November 2022, on Thursday, when China returned from a week-long holiday.

Copper in SHFE-monitored warehouses <CU-STX-SGH> increased by ⁠20,000 tons (51.6%) during the shortened week, but ‌stocks at 58,744 tons nonetheless ‌remain thin.

A workers' union at Antofagasta's Centinela copper mine in ‌Chile said their ongoing strike would begin to ‌weigh on outputin November. Antofagasta earlier downplayed the impact of the strike.

Disruptions at other mines added to already heightened supply risk, while stocks outside the US have fallen as copper has ‌been pulled into the country ahead of potential tariffs on refined copper imports.

The dollar ⁠index, ⁠which measures the greenback against a basket of other currencies, nudged lower. Oil prices also edged down on Friday.

Both had earlier in the week weighed on industrial metals.

A stronger dollar makes commodities more expensive for buyers using other currencies, while elevated energy prices threaten to stoke inflationary concerns and weigh on economic activity.

Among LME metals, aluminium gained 0.79%, zinc gained 1.25%, lead gained 0.7%, nickel gained 0.66% and tin gained 0.96%.

On the SHFE, aluminium lost 0.49%, zinc lost 1.12%, lead lost 1.45%, nickel lost 0.38% and tin dropped 4.23%.


China and EU Trade Envoys Seek Ways to Ease Tensions over Growing Imbalances

EU and Chinese flags are seen in this illustration taken, March 20, 2025. REUTERS/Dado Ruvic/Illustration
EU and Chinese flags are seen in this illustration taken, March 20, 2025. REUTERS/Dado Ruvic/Illustration
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China and EU Trade Envoys Seek Ways to Ease Tensions over Growing Imbalances

EU and Chinese flags are seen in this illustration taken, March 20, 2025. REUTERS/Dado Ruvic/Illustration
EU and Chinese flags are seen in this illustration taken, March 20, 2025. REUTERS/Dado Ruvic/Illustration

The top trade envoys for China and the European Union were wrapping up two days of talks Friday aimed at calming escalating tensions over growing imbalances between the two giant economies.

EU trade chief Maros Sefcovic traveled to Beijing saying it was crucial that the negotiations deliver “tangible outcomes” in rebalancing trade between China and the 27-nation bloc.

It was unclear, however, if the two sides would find the will to resolve key factors behind China’s growing trade surplus, which hit 360 billion euros ($410 billion) last year.

China is pushing for the EU to stop blocking its imports of advanced computer chipmaking machines, restrictions imposed on national security grounds at Washington's behest.

Sefcovic said the talks this week were the culmination of three months of intensive work. He had set an October deadline for meaningful results on trade rebalancing.

Earlier in the week, the Chinese Commerce Ministry issued a statement urging the EU to avoid protectionist measures, warning that such moves could backfire.

Trade tensions have grown in recent months, with both sides imposing or considering curbs on each other’s imports.

The EU has moved to limit imports of Chinese-made electric vehicles and EV batteries and enacted measures to protect the European steel industry. It also is limiting duty-free imports of e-commerce small parcels, essentially targeting Chinese fast fashion firms.

Last week, China launched an anti-dumping investigation into imports from the EU of p-nitrotoluene, a chemical compound used in dyes and pharmaceuticals.

Chinese officials and businesses have raised concerns over reports some EU members are pushing for new measures to protect local industries.

Worries over surging Chinese exports to Europe and other parts of the world in what some are calling a China shock 2.0 have deepened as the US, especially since President Donald Trump returned to the White House, has raised tariffs and enacted other measures to try to reduce its own huge trade deficit with Beijing.

Despite the backlash from some of its trading partners, China's global trade surplus hit $1.2 trillion in 2025 and is forecast to surpass $1 trillion again this year.

The EU's trade deficit with China widened to 103.34 billion euros (about $116 billion) in the April-July quarter, as imports rose to 153.63 billion euros ($172.3 billion) ,while European exports to China climbed to 50.3 billion euros ($56.4 billion), according to EU statistics.