Sudanese Pound Continues Slide Amid Parallel-Market Pressures
Sudan’s pound weakens sharply against the dollar as parallel-market reliance grows, dollarisation spreads, and structural economic collapse deepens amid ongoing conflict.
Sudan’s currency continued to tumble on this week as the pound fell against major foreign currencies, reflecting deepening monetary paralysis and the widening dominance of dollarisation in daily transactions.
In the parallel market, the US dollar was selling at 3,800 SDG, up nearly 578% since the war began in April 2023, when it traded at 560 SDG. The pound has lost much of its domestic function, with the euro reaching 4,418.60 SDG (+690%) and the British pound 5,000 SDG (+793%).
Regional currencies also surged where the Saudi riyal stood at 1,013.33 SDG, the UAE dirham at 1,035.42 SDG, and the Qatari riyal at 1,043.95 SDG.
A slight depreciation of the Egyptian pound by one Sudanese pound to 80.93 SDG reflected the fragile stability in other currencies.
The current financial and monetary state come amid conflicting policies including the release of a new 2,000-pound note without monetary coverage, and the liberalisation of fuel imports, which have fueled speculation and heightened demand for foreign currency.
International agencies have described the broader context of Sudan’s crisis. The World Bank, in its May 2025 report, warned that the country is moving toward a “post-currency economy,” with the pound’s function eroded and traditional monetary policy tools largely ineffective. Government debt reached 272% of GDP, unemployment stood at 20.8% in mid-November, and the UN OCHA reported a sharp expansion in humanitarian needs, with widespread displacement and growing funding pressures on both the state and donors.
The African Development Bank highlighted that ongoing conflict disrupts local capital flows and investment, worsening liquidity shortages and reinforcing monetary paralysis.
Looking ahead, seasonal import demand before Ramadan is expected to drive further pressure on the pound, expected in December and peaking in January.
Without structural reforms, the parallel market remains the key determinant of currency prices, and surpassing 5,000 SDG per dollar in early 2026 is a plausible scenario.
Sudan now faces an economy characterised by halted domestic monetary activity, deepening dollarisation, and fragile public finances, with structural and humanitarian pressures compounding the currency crisis.