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.



Israeli Plan to Seize Gaza Alarms Many: 'What's Left for You to Bomb?'

Displaced Palestinians snatch bread loaves distributed by a charity kitchen at the Nuseirat refugee camp in the central Gaza Strip on May 5, 2025. (Photo by Eyad BABA / AFP)
Displaced Palestinians snatch bread loaves distributed by a charity kitchen at the Nuseirat refugee camp in the central Gaza Strip on May 5, 2025. (Photo by Eyad BABA / AFP)
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Israeli Plan to Seize Gaza Alarms Many: 'What's Left for You to Bomb?'

Displaced Palestinians snatch bread loaves distributed by a charity kitchen at the Nuseirat refugee camp in the central Gaza Strip on May 5, 2025. (Photo by Eyad BABA / AFP)
Displaced Palestinians snatch bread loaves distributed by a charity kitchen at the Nuseirat refugee camp in the central Gaza Strip on May 5, 2025. (Photo by Eyad BABA / AFP)

An Israeli plan to seize the Gaza Strip and expand the military operation has alarmed many in the region. Palestinians are exhausted and hopeless, pummeled by 19 months of heavy bombing. Families of Israeli hostages still being held in Gaza are terrified that the possibility of a ceasefire is slipping further away.

“What’s left for you to bomb?” asked Moaz Kahlout, a displaced man from Gaza City who said many resort to GPS to locate the rubble of homes wiped out in the war.

Israeli officials said Monday that Cabinet ministers approved the plan to seize Gaza and remain in the Palestinian territory for an unspecified amount of time — news that came hours after the military chief said the army was calling up tens of thousands of reserve soldiers.

Details of the plan were not formally announced, and its exact timing and implementation were not clear. It may be another measure by Israel to try to pressure Hamas into making concessions in ceasefire negotiations.

The war began after Hamas-led group attacked southern Israel on Oct. 7, 2023, killing some 1,200 people, mostly civilians, and abducting 251. Israel says 59 captives remain in Gaza, about 35 of whom are believed to be dead.

Israel’s ensuing offensive has killed more than 52,000 people in Gaza, many of them women and children, according to Palestinian health officials, who don’t distinguish between combatants and civilians in their count.

“They destroyed us, displaced us and killed us,” said Enshirah Bahloul, a woman from the southern city of Khan Younis. “We want safety and peace in this world. We do not want to remain homeless, hungry, and thirsty.”

Some Israelis are also opposed to the plan. Hundreds of people protested outside the parliament Monday as the government opened for its summer session. One person was arrested.

Families of hostages held in Gaza are afraid of what an expanded military operation or seizure could mean for their relatives.

“I don’t see the expansion of the war as a solution — it led us absolutely nowhere before. It feels like déjà vu from the year ago,” said Adi Alexander, father of Israeli-American Edan Alexander, a soldier captured in the Oct. 7 attack.

The father is pinning some hopes on US President Donald Trump’s visit to the Middle East, set for next week. Israeli leaders have said they don't plan to expand the operation in Gaza until after Trump’s visit, leaving the door open for a possible deal. Trump isn't expected to visit Israel, but he and other American officials have frequently spoken about Edan Alexander, the last American-Israeli held in Gaza who is still believed to be alive.

Moshe Lavi, the brother-in-law of Omri Miran, 48, the oldest hostage still believed to be alive, said the family was concerned about the plan.

“We hope it’s merely a signal to Hamas that Israel is serious in its goal to dismantle its governmental and military capabilities as a leverage for negotiations, but it’s unclear whether this is an end or a means,” he said.

Meanwhile, every day, dozens of Palestinians gather outside a charity kitchen that distributes hot meals to displaced families in southern Gaza. Children thrust pots or buckets forward, pushing and shoving in a desperate attempt to bring food to their families.

“What should we do?” asked Sara Younis, a woman from the southernmost city of Rafah, as she waited for a hot meal for her children. “There’s no food, no flour, nothing.”

Israel cut off Gaza from all imports in early March, leading to dire shortages of food, medicine and other supplies. Israel says the goal is to pressure Hamas to free the remaining hostages.

Aid organizations have warned that malnutrition and hunger are becoming increasingly prevalent in Gaza. The United Nations says the vast majority of the population relies on aid.

Aid groups have expressed concerns that gains to avert famine made during this year's ceasefire have been diminishing.

Like most aid groups in Gaza, Tikeya has run out of most food and has cooked almost exclusively pasta for the past two weeks.

Nidal Abu Helal, a displaced man from Rafah who works at the charity, said that the group is increasingly concerned that people, especially children, will die of starvation.

“We’re not afraid of dying from missiles," he said. "We’re afraid that our children will die of hunger in front of us.”