According to reports from Sudan on the 24th, the domestic currency, the Sudanese pound, is continuously devaluing against foreign currencies, reaching historic lows. In Khartoum, the capital, one dollar is now worth 880 Sudanese pounds on the local currency exchange market. Just before the outbreak of the conflict in Sudan, one dollar was worth 607 Sudanese pounds. This new low represents a loss of over 40% of its value. Additionally, one Saudi riyal has now reached an all-time high, worth 225 Sudanese pounds.
Inflation, Weakened Production, and Disruptions as Culprits
Several factors are contributing to the depreciation of the Sudanese pound, including high inflationary pressure in Sudan, weakened production, stagnant exports, and disruptions in business activities. Due to the prolonged conflict, the Sudanese government is currently struggling to pay for imported goods and services in “hard currency.”
Recession Might Befall the Country
As the conflict between the Sudanese Armed Forces and the Rapid Support Forces persists, Sudan faces the risk of a severe economic recession and further depreciation of the Sudanese pound in the future. Adil Mahagu, a Sudanese economic expert, has even predicted that unless Sudan’s central bank takes action to avert a potential economic collapse, one dollar could reach a value of 1,000 Sudanese pounds within the next two months.As early as July, Sudanese economists widely estimated that the economic losses resulting from the armed conflict in Sudan had reached $9 billion, equivalent to $100 million per day.
