The Sudanese pound has collapsed on the parallel market, reaching around 6400 pounds per US dollar in recent days and losing more than 90 percent of its value since the war began in April 2023. The gap between the official rate and the street rate signals deep structural damage to the currency and the economy underpinning it.
Official rates mask reality
The Bank of Sudan maintains official buying and selling rates of 3350 and 3375 pounds per dollar respectively, figures that bear little resemblance to what traders actually pay. The chasm between these official prices and the parallel market rate reflects a collapse of confidence in the currency itself, according to Luay Abdel Moneim, an economic expert. Banks have become unable to supply dollars to importers and other buyers, he said, forcing commerce onto the black market where actual supply and demand determine the pound’s real value.
Declared and undeclared sanctions have limited investment flows and external transfers while delaying Sudan’s reconnection to global financial markets, Abdel Moneim added. Several neighbouring countries have also made it difficult to use the Sudanese currency. A large share of Sudan’s gold production—which once accounted for more than 40 percent of the country’s exports—is smuggled rather than sold officially, depriving the state of dollar revenues that could bolster foreign reserves.
War compounds structural decay
The pound’s collapse stems partly from accumulated imbalances that predate the conflict. Chronic fiscal deficits and uncontrolled monetary expansion preceded April 2023, according to Abdel Moneim, as authorities printed money to compensate for revenue shortfalls. The war has intensified these problems. Millions of Sudanese now need humanitarian aid. Importers rely heavily on the parallel market to finance purchases from abroad, adding pressure on the pound. Economic activity across the country has been disrupted. Half of Sudan’s 40 million people now require humanitarian assistance.
Frequently asked questions
What is the Sudanese pound worth on the parallel market?
Around 6400 pounds per US dollar in recent days.
What are the official Bank of Sudan rates?
3350 pounds per dollar for buying and 3375 for selling.
What structural problems preceded the war?
Chronic fiscal deficits and uncontrolled monetary expansion due to revenue shortfalls.
Source: Bank of Sudan
