Sudan central bank to withdraw small banknotes as inflation bites

July 4, 2026 (KHARTOUM) – The Central Bank of Sudan on Saturday announced it will withdraw small currency denominations from circulation, giving holders a three-month deadline to deposit the banknotes into commercial bank accounts.

The measure targets the 1, 2, 5, 10, 20, and 50-pound notes, which have effectively lost their purchasing power amid soaring inflation and a sharp depreciation of the Sudanese pound.

The formal notice was published in the official gazette on April 30, meaning the grace period for the affected banknotes will expire at the close of business on July 30, 2026.

The central bank said the banknotes will remain legal tender until the deadline but can only be exchanged at face value via commercial bank deposits. Cash-for-cash exchanges will not be permitted.

After the July deadline, the banknotes will lose their legal tender status and will no longer be valid for settling debts.

Exceptions will be made for states experiencing severe security conflicts and banking disruptions, where the central bank said it would safeguard citizens’ rights to recover the face value of their currency based on situational assessments.

In mid-May, the central bank completed the second phase of a separate currency exchange targeting 1,000- and 500-pound notes in Khartoum, Al Jazirah, and White Nile states. Those larger notes remain valid in other states where ongoing fighting has blocked the exchange process.