Sudan Central Bank and 17 Commercial Banks Resume Operations in Khartoum
Banks return to Khartoum after war-time collapse, despite warnings from bankers over risks.
Sudan’s central bank will resume operations from Khartoum this month for the first time since the city’s banking system collapsed due to the war launched by the Rapid Support Forces (RSF) , a move officials say is intended to restore core economic functions and reopen access to banking services.
The decision, announced by Central Bank Governor Amina Hassan, follows nearly three years in which the Bank of Sudan and many commercial institutions were looted, destroyed or displaced by the RSF. By March 2025, the bank’s headquarters had suffered “wide-scale destruction,” according to photographs taken on 22 March 2025 by Agence France-Presse. Seventeen commercial banks will restart operations through their main branches and offices in the capital.
The banking sector absorbed severe structural damage during the conflict. Around 100 bank branches were looted or destroyed in Khartoum, Gezira and Darfur, while 70 per cent of branches inside active conflict zones were forced to shut down. Total losses across the sector exceeded US$20bn, including citizens’ cash and gold stored in bank vaults that were later ransacked.
Foreign-currency shortages continue to impede the central bank’s ability to stabilise the economy. The Sudanese pound has weakened dramatically, with the dollar trading at 3,800 pounds on the parallel market compared with 560 pounds before the war.
“The central bank will face the challenges of the parallel economy which controls a large part of economic activity,” warned banker Mohamed Sayed Ahmed. He added that this undermines its ability to provide credit and reduces liquidity flowing through the formal financial system.
“The return to Khartoum represents a new challenge to ensure national economic stability and coordination between fiscal and monetary policies,” he said. Stressing the need to strengthen liquidity, improve banking performance, stabilise inflation and the exchange rate, and intensify efforts to combat money-laundering and terrorism financing.
Non-performing loans have surged as the war crippled commercial sectors, industry and trade networks.
“There is no near-term hope for the sector to regain full activity,” said economist Ibrahim Mahmoud, arguing that large portions of the country remain outside government control and therefore outside productive economic life.
He added that continued printing of new banknotes to absorb cash circulating outside banks will “create additional problems for the economy,” especially for citizens already bearing the financial burdens of the conflict.
Banking specialist Elias Bashir said the central bank must prioritise rebuilding public trust by providing “reliable and modern banking services” and adequate financing to help citizens and businesses recover losses. He called for a broader restructuring to align the banking sector with development needs and public services, including health, education and war-damaged manufacturing facilities.
Economic researcher and banker Hashim Abdallah Rahma described the current condition of the banking system as “extremely poor” due to the widespread looting of banks in Khartoum and several states, which “deprived them of the cash base needed for deposits and withdrawals.” While not all bank reserves are held physically, he said banks rely heavily on reserves stored with the central bank — which itself was looted of both domestic and foreign currency.
The return of the central bank will coincide with the reopening of 17 commercial banks out of the 37 operating nationally. These banks have begun rehabilitating their headquarters and branches, repairing infrastructure, updating IT systems and securing facilities to prepare for reopening. Some have relocated to temporary sites within Khartoum where basic services have been restored.
Qurashi Suleiman, director of the Central Bank’s Khartoum branch, said the 17 banks completed their procedures to resume activity after restoring their premises and updating systems.
He added that several institutions have moved to alternative premises in the capital, allowing operations to restart in the coming weeks.
Reporting by Awad Mustafa