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.



Why is Israel Launching Crackdown in the West Bank after the Gaza Ceasefire?

Israeli army vehicles are seen during a military operation in the West Bank city of Jenin, Tuesday, Jan. 21, 2025. (AP Photo/Majdi Mohammed).
Israeli army vehicles are seen during a military operation in the West Bank city of Jenin, Tuesday, Jan. 21, 2025. (AP Photo/Majdi Mohammed).
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Why is Israel Launching Crackdown in the West Bank after the Gaza Ceasefire?

Israeli army vehicles are seen during a military operation in the West Bank city of Jenin, Tuesday, Jan. 21, 2025. (AP Photo/Majdi Mohammed).
Israeli army vehicles are seen during a military operation in the West Bank city of Jenin, Tuesday, Jan. 21, 2025. (AP Photo/Majdi Mohammed).

In the days since a fragile ceasefire took hold in the Gaza Strip, Israel has launched a major military operation in the occupied West Bank and suspected Jewish settlers have rampaged through two Palestinian towns.

The violence comes as Israeli Prime Minister Benjamin Netanyahu faces domestic pressure from his far-right allies after agreeing to the truce and hostage-prisoner exchange with the Hamas militant group. US President Donald Trump has, meanwhile, rescinded the Biden administration's sanctions against Israelis accused of violence in the territory.

It's a volatile mix that could undermine the ceasefire, which is set to last for at least six weeks and bring about the release of dozens of hostages in exchange for hundreds of Palestinian prisoners, most of whom will be released into the West Bank.

Israel captured the West Bank, Gaza and east Jerusalem in the 1967 Mideast war, and Palestinians want all three territories for their future state. Escalations in one area frequently spill over, raising further concerns that the second and far more difficult phase of the Gaza ceasefire - which has yet to be negotiated - may never come.

Dozens of masked men rampaged through two Palestinian villages in the northern West Bank late Monday, hurling stones and setting cars and property ablaze, according to local Palestinian officials. The Red Crescent emergency service said 12 people were beaten and wounded.

Israeli forces, meanwhile, carried out a raid elsewhere in the West Bank that the military said was in response to the hurling of firebombs at Israeli vehicles. It said several suspects were detained for questioning, and a video circulating online appeared to show dozens being marched through the streets.
On Tuesday, the Israeli military launched another major operation, this time in the northern West Bank city of Jenin, where its forces have regularly clashed with Palestinian militants in recent years, even before Hamas' Oct. 7, 2023, attack out of the Gaza Strip triggered the war there.

At least nine Palestinians were killed on Tuesday, including a 16-year-old, and 40 were wounded, the Palestinian Health Ministry said. The military said its forces carried out airstrikes and dismantled roadside bombs and "hit" 10 militants - though it was not clear what that meant.

Palestinian residents have reported a major increase in Israeli checkpoints and delays across the territory.

Israeli Defense Minister Israel Katz cast the Jenin operation as part of Israel's larger struggle against Iran and its militant allies across the region, saying "we will strike the octopus' arms until they snap."

The Palestinians view such operations and the expansion of settlements as ways of cementing Israeli control over the territory, where 3 million Palestinians live under seemingly open-ended Israeli military rule, with the Western-backed Palestinian Authority administering cities and towns.

Prominent human rights groups call it a form of apartheid since the over 500,000 Jewish settlers in the territory have all the rights conferred by Israeli citizenship. Israel rejects those allegations.

Netanyahu has been struggling to quell a rebellion by his ultranationalist coalition partners since agreeing to the ceasefire. The agreement requires Israeli forces to withdraw from most of Gaza and release hundreds of Palestinian prisoners - including militants convicted of murder - in exchange for hostages abducted in the Oct. 7 attack.

One coalition partner, Itamar Ben-Gvir, resigned in protest the day the ceasefire went into effect. Another, Finance Minister Bezalel Smotrich, has threatened to bolt if Israel does not resume the war after the first phase of the ceasefire is slated to end in early March.

They want Israel to annex the West Bank and to rebuild settlements in Gaza while encouraging what they refer to as the voluntary migration of large numbers of Palestinians.

Netanyahu still has a parliamentary majority after Ben-Gvir's departure, but the loss of Smotrich - who is also the de facto governor of the West Bank - would severely weaken his coalition and likely lead to early elections.

That could spell the end of Netanyahu's nearly unbroken 16 years in power, leaving him even more exposed to longstanding corruption charges and an expected public inquiry into Israel's failure to prevent the Oct. 7 attack.

Trump's return to the White House offers Netanyahu a potential lifeline.

The newly sworn-in president, who lent unprecedented support to Israel during his previous term, has surrounded himself with aides who support Israeli settlement. Some support the settlers' claim to a biblical right to the West Bank because of the Jewish kingdoms that existed there in antiquity.

The international community overwhelmingly considers settlements illegal.

Among the flurry of executive orders Trump signed on his first day back in office was one rescinding the Biden administration's sanctions on settlers and Jewish extremists accused of violence against Palestinians.

The sanctions - which had little effect - were one of the few concrete steps the Biden administration took in opposition to the close US ally, even as it provided billions of dollars in military support for Israel's campaign in Gaza, among the deadliest and most destructive in decades.

Trump claimed credit for helping to get the Gaza ceasefire agreement across the finish line in the final days of the Biden presidency.

But this week, Trump said he was "not confident" it would hold and signaled he would give Israel a free hand in Gaza, saying: "It's not our war, it's their war."