Sudan Banknote Switch Causes Cash Crunch

A Sudanese man pushes a cart with water containers in Omdurman, the Sudanese capital's twin city, during battles between the Sudanese military forces and Rapid Support Forces (RSF), on January 17, 2025. (Photo by AFP)
A Sudanese man pushes a cart with water containers in Omdurman, the Sudanese capital's twin city, during battles between the Sudanese military forces and Rapid Support Forces (RSF), on January 17, 2025. (Photo by AFP)
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Sudan Banknote Switch Causes Cash Crunch

A Sudanese man pushes a cart with water containers in Omdurman, the Sudanese capital's twin city, during battles between the Sudanese military forces and Rapid Support Forces (RSF), on January 17, 2025. (Photo by AFP)
A Sudanese man pushes a cart with water containers in Omdurman, the Sudanese capital's twin city, during battles between the Sudanese military forces and Rapid Support Forces (RSF), on January 17, 2025. (Photo by AFP)

Sudan's army-aligned government has issued new banknotes in areas it controls, causing long queues at banks, disrupting trade and entrenching division.

In a country already grappling with war and famine, the swap replaced 500 and 1,000 Sudanese pound banknotes (worth around $0.25 and $0.50 respectively) with new ones in seven states.

The government justified the move as necessary to "protect the national economy and combat criminal counterfeiters,” AFP reported.

But for many Sudanese it just caused problems.

In Port Sudan, now the de facto capital, frustration boiled over as banks failed to provide enough new notes.

One 37-year-old woman spent days unsuccessfully trying to get the new money.

"I've been going to the bank four or five times a week to get the new currency. But there is none," she told AFP, requesting anonymity for fear of reprisals.

Grocers, rickshaw drivers, petrol stations and small shop owners are refusing to accept the old currency, preventing many transactions in a country reliant on cash.

"We cannot buy small things from street vendors any more or transport around the city because they refuse the old currency," the woman said.

The currency shift comes 21 months into a war that has devastated the northeast African country's economy and infrastructure, caused famine in some areas, uprooted millions of people and seen the Sudanese pound plunge.

From 500 pounds to the US dollar in April 2023, it now oscillates between 2,000 and 2,500.

Finance Minister Gibril Ibrahim defended the switch, saying it aims to "move money into the banking system, ensure the monetary mass enters formal channels as well as prevent counterfeiting and looted funds.”

But analysts say it is less about economics and more about gaining the upper hand in the war between army chief Abdel Fattah al-Burhan and his former deputy Mohamed Hamdan Daglo, who leads the Rapid Support Forces (RSF).

"The army is trying to weaken the RSF by having a more dominant currency," Matthew Sterling Benson at the London School of Economics and Political Science told AFP.

After the RSF looted banks, the army "wants to control the flow of money" and deprive them of resources, he said.

Kholood Khair, founder of think tank Confluence Advisory, believes that this financial squeeze may accelerate RSF plans to establish a rival currency and administration.

"The move has catalyzed the already existing trajectory towards a split," she told AFP.

Sudan is already fragmented: the army holds the north and east and the RSF dominates in the western Darfur region and parts of the south and center.

Greater Khartoum is carved up between them.

For Sudan's population, the move has only compounded their suffering.

Activist Nazik Kabalo, who has coordinated aid in several areas, said supply chains have been severely disrupted.

Farmers, traders and food suppliers rely entirely on cash.

"And if you do not have cash, you cannot buy supplies, needed for aid or for anything else," Kabalo told AFP.

The government has promoted digital banking apps such as Bankak, but many Sudanese cannot access them because of widespread telecommunications outages.



Syria’s Al-Qusayr Celebrates Eid al-Fitr without Hezbollah for First Time in Years

People perform Eid Al-Fitr prayers in Al-Qusayr. (Sami Volunteer Team)
People perform Eid Al-Fitr prayers in Al-Qusayr. (Sami Volunteer Team)
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Syria’s Al-Qusayr Celebrates Eid al-Fitr without Hezbollah for First Time in Years

People perform Eid Al-Fitr prayers in Al-Qusayr. (Sami Volunteer Team)
People perform Eid Al-Fitr prayers in Al-Qusayr. (Sami Volunteer Team)

Amid the devastation, thousands of residents of Syria’s Al-Qusayr performed Eid Al-Fitr prayers in the northern district square—the site where the city’s first protest against President Bashar al-Assad’s rule erupted in 2011.

For the first time in Al-Qusayr’s history, Eid prayers were held in a public square. It was also the first mass gathering of residents in an open space in 13 years, following a war that destroyed 70% of the city, displaced its people, and led to its capture by Lebanon’s Hezbollah and Syrian regime forces.

Al-Qusayr, a region located near the Lebanese border, was once Hezbollah’s most significant stronghold in Syria. The group withdrew after the fall of the Syrian regime in December, but its loyalists and affiliated locals remained, along with residents of several border villages that have seen sporadic clashes in recent months.

The most intense fighting occurred in February, when Syrian forces launched a military operation that pushed them into Lebanese territory and deployed troops to seal off illegal border crossings.

Tensions flared again two weeks ago after Syrian soldiers were killed in the border region, triggering an exchange of artillery fire between the two sides.

The clashes left casualties on both ends and forced the displacement of border village residents before a ceasefire was reached with the Lebanese army.

The agreement included the closure of four illegal crossings in an effort to curb the smuggling of weapons and drugs, a trade that has flourished over the past decade under the former regime.

As soon as the regime fell, refugees from Al-Qusayr living in Lebanese camps began returning to their hometown. Hundreds arrived to find their homes completely destroyed, forcing them to set up tents beside the ruins while they rebuilt or searched for alternative housing.

The residents of Al-Qusayr resumed their communal Eid traditions after Ramadan. (Sami Volunteer Team)

The large turnout for Eid prayers underscored the scale of the return.

Journalist Ahmed al-Qasir, who recently came back, estimated that about 65% of those displaced have now returned. Before the uprising, Al-Qusayr had a population of around 150,000, he told Asharq Al-Awsat.

Shahin, 30, who returned in 2018, described the city as a wasteland at the time, despite some 20,000 people having already come back.

“Hezbollah, regime militias, and smugglers controlled the area. There were no real markets, just small shops. Everything was in ruins—schools, clinics, hospitals,” he said.

Residents had to travel 30 kilometers to Homs for basic necessities, enduring regime checkpoints that extorted money along the way.

With the fall of Assad’s regime and Hezbollah’s withdrawal, life in Al-Qusayr has slowly begun to return to normal. Since the start of Ramadan, markets have reopened despite widespread destruction, poverty, and hardship.

On the eve of Eid, the city’s streets buzzed with late-night shopping, Shahin noted.

“Al-Qusayr is finally regaining its role as the region’s commercial hub,” he said.

According to a survey by the Sami Volunteer Team, more than 30,000 refugees returned to Al-Qusayr and its countryside within the first month of the regime’s collapse.

That number is believed to have doubled over the past four months, and team organizers expect it to rise further once the school year ends.

Zaid Harba, a member of the 40-person volunteer group, said most returnees came from refugee camps in Lebanon, while fewer arrived from displacement camps in northern Syria.

Many families there are waiting for the academic year to conclude before arranging their return.