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.



King Salman’s Reign Consolidates AI’s Future in Saudi Arabia

Custodian of the Two Holy Mosques King Salman bin Abdulaziz inaugurated in 2018 the first phase of the projects of Waad Al-Shamal industrial City. SPA
Custodian of the Two Holy Mosques King Salman bin Abdulaziz inaugurated in 2018 the first phase of the projects of Waad Al-Shamal industrial City. SPA
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King Salman’s Reign Consolidates AI’s Future in Saudi Arabia

Custodian of the Two Holy Mosques King Salman bin Abdulaziz inaugurated in 2018 the first phase of the projects of Waad Al-Shamal industrial City. SPA
Custodian of the Two Holy Mosques King Salman bin Abdulaziz inaugurated in 2018 the first phase of the projects of Waad Al-Shamal industrial City. SPA

The past decade under the reign of Custodian of the Two Holy Mosques King Salman bin Abdulaziz witnessed achievements in all aspects.

To accomplish political, economic, social, and technological achievements, King Salman’s rule witnessed the establishment of several entities focused on modern and advanced technologies. These include the founding of specialized technology companies and government entities to enhance Saudi Arabia's position in advanced technologies.

For example, the Saudi Data and Artificial Intelligence Authority (SDAIA) was established in 2019. SDAIA contributed to the development of several advanced projects and platforms, as well as the development of Saudi personnel in the fields of data and artificial intelligence.

Additionally, during King Salman’s reign, the National Cybersecurity Authority was established in 2017, which strengthened the Kingdom's ranking in the global cybersecurity index, where it ranked 13th worldwide and 1st in the Arab world in 2019.

This is in addition to other specialized government entities concerned with research and development, such as the General Authority for Defense Development, the General Authority for Military Industries, and the Research, Development, and Innovation Authority.

Several companies were also founded during King Salman’s rule, specializing in future economic technologies. The Saudi electronics company Alat, fully owned by the Public Investment Fund, was established in Feb. 2014. This company specializes in the manufacturing and development of advanced electronics, such as semiconductors, smart devices, advanced industries, and the infrastructure for artificial intelligence.

The Kingdom has also organized several global conferences focused on modern technologies. In March 2024, the third edition of the LEAP conference was launched. It is the largest conference and exhibition dedicated to the future of technologies and their role in the prosperity of humanity. This followed the first edition held in 2022, and the second the year after.

Riyadh also hosted the third edition of the Global Artificial Intelligence Summit last September, announcing several international partnerships and memorandums of understanding aimed at enhancing the future vision of this technology in the upcoming phase.

The summit discussed topics related to artificial intelligence, its applications, and its impact on society and the economy. It aimed to maximize the benefits of AI technologies and find solutions to current challenges across various sectors, such as smart cities, human capacity development, healthcare, transportation, energy, culture and heritage, the environment, and economic mobility.

Another example is when the Saudi Ministry of Energy announced that it would establish a General Directorate for Artificial Intelligence and Business Development to increase energy efficiency and reduce consumption.

Meanwhile, Aramco Digital revealed its collaboration with Groq - AI inference provider and creator of the Language Processing Unit (LPU) - to establish the world’s largest inferencing data center in the Kingdom.

The summit organized by SDAIA featured exceptional and interactive experiences, attracting more than 32,000 visitors from inside and outside the Kingdom. It also included the participation of AI experts, specialists, and leaders from around the world, who gathered to discuss the future of this technology and propose inspiring solutions for the advancement of humanity.