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.



A Week Into the Fragile Israel-Iran Peace Agreement, Here's What We Still Don't Know

People attend the funeral procession of Iranian military commanders, nuclear scientists and others killed in Israeli strikes, in Tehran, Iran, June 28, 2025. Majid Asgaripour/WANA (West Asia News Agency) via REUTERS
People attend the funeral procession of Iranian military commanders, nuclear scientists and others killed in Israeli strikes, in Tehran, Iran, June 28, 2025. Majid Asgaripour/WANA (West Asia News Agency) via REUTERS
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A Week Into the Fragile Israel-Iran Peace Agreement, Here's What We Still Don't Know

People attend the funeral procession of Iranian military commanders, nuclear scientists and others killed in Israeli strikes, in Tehran, Iran, June 28, 2025. Majid Asgaripour/WANA (West Asia News Agency) via REUTERS
People attend the funeral procession of Iranian military commanders, nuclear scientists and others killed in Israeli strikes, in Tehran, Iran, June 28, 2025. Majid Asgaripour/WANA (West Asia News Agency) via REUTERS

It's been a week since the United States pressed Israel and Iran into a truce, ending a bloody, 12-day conflict that had set the Middle East and globe on edge.

The fragile peace, brokered by the US the day after it dropped 30,000-pound "bunker-busting" bombs on three of Iran's key nuclear sites, is holding. But much remains unsettled, The Associated Press reported.

How badly Iran’s nuclear program was set back remains murky. The prospects of renewed US-Iran peace talks are up in the air. And whether US President Donald Trump can leverage the moment to get Israeli Prime Minister Benjamin Netanyahu 's government and Hamas focused on a ceasefire and hostage deal that brings about an end to the 20-month war in Gaza remains an open question.

Here is a look at what we still don't know:

How far Iran's nuclear program has been set back Trump says three targets hit by American strikes were “obliterated.” His defense secretary said they were “destroyed.”

A preliminary report issued by the US Defense Intelligence Agency, meanwhile, said the strikes did significant damage to the Fordo, Natanz and Isfahan sites, but did not totally destroy the facilities.

Rafael Grossi, head of the International Atomic Energy Agency, said on CBS’ “Face the Nation” on Sunday that the three Iranian sites with “capabilities in terms of treatment, conversion and enrichment of uranium have been destroyed to an important degree.” But, he added, “some is still standing” and that because capabilities remain, “if they so wish, they will be able to start doing this again.” He said assessing the full damage comes down to Iran allowing inspectors access.

What future US-Iran relations might look like

After the ceasefire deal came together, Trump spoke of potentially easing decades of biting sanctions on Tehran and predicted that Iran could become a “great trading nation” if it pulled back once-and-for-all from its nuclear program.

The talk of harmony didn't last long.

Ali Khamenei, in his first public appearance after the ceasefire was announced, claimed Tehran had delivered a “slap to America’s face." Trump responded by suggesting the supreme leader own up to the fact Iran “got beat to hell. The president also said he was backing off reviewing any immediate sanction relief, because of Khamenei's heated comments.

White House officials say the US and Iran are already in early discussions about resuming negotiations that had ended after Israel began launching strikes. But Iranian Foreign Minister Abbas Araghchi says there's no agreement in place to restart talks.

It's unclear if Iran's leadership is ready to come to the table so soon after the fighting has ended — especially if Trump holds to the position that Iran must give up nuclear enrichment for even civilian use. And Trump has offered conflicting statements about his commitment to talks. “We may sign an agreement,” he said Wednesday at a NATO summit press conference. He added, “I don’t think it’s that necessary.”

What role Iran's supreme leader will play

Khamenei's age and recent diminished appearance have raised questions about the scope of his involvement in US-Iran relations and Iran's response to both American and Israeli strikes. But despite having spent the last few weeks in a bunker as threats to his life escalated, there is little indication that Khamenei does not still reign supreme over the country's massive military and governmental operations.

Khamenei has ruled three times longer than his predecessor, the late Ruhollah Khomeini, and has shaped life for the country's more than 90 million people perhaps even more dramatically.

He entrenched the system of rule by the “mullahs,” or Shiite Muslim clerics. That secured his place in the eyes of hard-liners as the unquestionable authority, below only that of God. At the same time, Khamenei built the paramilitary Revolutionary Guard into the dominant force in Iran’s military and internal politics.

How Iran might strike back Iran's retaliatory missile attacks on a US base in Qatar following the American bombardment were sloughed off by the White House as a half-hearted, face-saving measure. The US was forewarned and the salvos were easily fended off.

Yet Iran remains a persistent threat, particularly via cyberwarfare. Hackers backing Tehran have already targeted US banks, defense contractors and oil industry companies — but so far have not caused widespread disruptions to critical infrastructure or the economy.

The US Department of Homeland Security last week issued a public bulletin warning of increased Iranian cyber threats. And the US Cybersecurity and Infrastructure Security Agency, is urging organizations that operate critical infrastructure like water systems, pipelines or power plants to stay vigilant.

Whether the Israel-Iran ceasefire will hold It remains a fragile peace.

Immediately following the US strikes, Trump got on the phone with Netanyahu and told the Israeli leader not to expect further US offensive military action, according to a senior White House official who was not authorized to comment publicly about the sensitive diplomatic talks.

But even as he agreed to deal, Netanyahu made clear that Israel will strike again “if anyone in Iran tries to revive this project.”

The ceasefire deal came without any agreement from Tehran on dismantling its nuclear program. Khamenei claims the attacks “did nothing significant” to Iran's nuclear facilities.

Trump expressed confidence that Iran, at the moment, has no interest in getting its nuclear program back up. “The last thing they’re thinking about right now is enriched uranium,” Trump said.

Still, Trump says he expects Iran to open itself to international inspection to verify that it doesn’t restart its nuclear program by the International Atomic Energy Agency, the UN nuclear watchdog, or some other organization "that we respect, including ourselves.”

Whether Trump can now press Netanyahu on Gaza

The president took a big gamble with his decision to order strikes on Iran's nuclear fortress.

As a candidate, he promised to quickly end Russia's brutal war in Ukraine and the Israel-Hamas conflict in Gaza, but has failed to find a resolution to either. He also vowed to keep the US military out of foreign conflicts.

But after helping Israel with US strikes on Iran, Trump — in conversations with Netanyahu and other world leaders in recent days — has made clear he wants a deal completed soon, according to two people familiar with the private discussions and were not authorized to comment publicly.

On Friday, Trump told reporters, “We think within the next week we’re going to get a ceasefire.”

Trump didn't offer any further explanation for his optimism. But Israeli Minister for Strategic Affairs Ron Dermer is expected to be in Washington this week for talks on a Gaza ceasefire, Iran and other matters, according to an official familiar with the matter. The official spoke on condition of anonymity because they were not authorized to speak to the media.