Sudan’s new banknote fuels fears of financial exclusion and political division

November 10, 2024 (PORT SUDAN) -The Central Bank of Sudan’s introduction of a new 1,000 Sudanese pound banknote has been met with apprehension. It has raised concerns about financial instability in areas under the control of the Rapid Support Forces (RSF) and fuelled accusations of a hidden political agenda.

The central bank announced that the new note would be gradually rolled out through banks and that existing 1,000 and 500-pound notes would be phased out. Citizens can deposit these notes into their bank accounts and access funds through various payment methods.

The bank attributed the change to the circulation of large quantities of 1,000 and 500-pound notes “of unknown origin,” which has led to increased liquidity and adversely affected price stability. It also emphasized the need to mitigate the impact of the ongoing conflict, particularly the extensive looting of the central bank and the currency printing company by RSF forces.

However, this move has sparked fears that people in RSF-controlled areas, where banks have been looted and rendered inoperable, will effectively lose access to their savings, much of which is held in these larger denominations.

The RSF has accused the central bank of a “political agenda” behind the currency change. An RSF spokesperson alleged that the decision is a “preliminary step in a plan to divide Sudan and separate its regions.”

The spokesperson called on Sudanese citizens to defy the central bank’s directive and refrain from depositing money in banks or using the new banknote. They argued that changing the currency amid the widespread collapse of the banking system lacks legal basis.

The introduction of the new banknote underscores the deep divisions and challenges confronting Sudan as the conflict persists.