Sudanese pound plunges to record low after central bank eases currency rules

August 27, 2026 (KHARTOUM) – The Sudanese pound sank to an all-time low on the parallel market on Thursday, touching 6,400 per U.S. dollar after the central bank granted commercial lenders more leeway to set exchange rates, traders and market participants said.

The currency’s slide deepens Sudan’s protracted economic crisis, driven by wide disparities between official and unofficial rates, dwindling foreign reserves, and the economic fallout of the country’s ongoing civil war.

Currency traders told Reuters the dollar traded between 6,350 and 6,400 pounds at the close of Thursday’s session, while the UAE dirham climbed to 1,710 pounds, up from around 1,695 pounds earlier in the week.

One foreign exchange dealer, speaking on condition of anonymity, said some traders had temporarily halted sales of foreign banknotes, anticipating further declines in the pound’s value.

The Central Bank of Sudan issued a policy circular earlier this week repealing previous rate restrictions to allow commercial banks to adjust declared rates and purchase export revenues according to market supply and demand.

The central bank said the measure was intended to advance the country’s managed float policy and bridge the divide between formal banking channels and the parallel market.

The Bank of Khartoum sharply cut its posted rate for the UAE dirham to 972 pounds on Thursday after listing it at 1,630 pounds a day earlier, underscoring volatility in how lenders are adopting the new guidelines.

The UAE dirham is a primary transaction currency for Sudanese trade payments and diaspora remittances.

Some analysts said the currency could stabilize in the short term if banks successfully absorb export revenues and supply foreign exchange to commercial buyers.

Sudan’s economy has been in freefall since war erupted between the military and the paramilitary Rapid Support Forces in April 2023, destroying infrastructure, disrupting agricultural output, and choking trade.