Sudanese Caught Between Anxiety and Questions as the Pound Suffers Historic Collapse

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In what has been described as one of the most significant steps in Sudan’s foreign-exchange policy, the Central Bank of Sudan issued Circular No. 16/2026 several days ago, allowing commercial banks to adjust exchange rates more than once a day and to purchase export proceeds according to supply and demand. The circular also revoked a number of previous directives.

The move, which comes as part of the bank’s ongoing “exchange-rate liberalization policy,” has sparked debate and concern among citizens and experts, raising questions over whether the decision genuinely reflects monetary policy or has been imposed by the authorities, particularly as the Sudanese pound continues its rapid decline. The dollar has surpassed 7,000 Sudanese pounds on the parallel market, exceeding earlier expectations that it could reach 10,000 pounds by the end of the year.

The deterioration has had a direct impact on living conditions. The price of a sack of wheat flour has risen by 40%, from 77,000 to 108,000 pounds, in a stark illustration of the surge in consumer prices.

Central Bank Denies Withdrawal and Confirms Continued Intervention

In an attempt to absorb the shock and ease concerns, the Central Bank issued a statement six days ago, published on August 29, stressing that the new circular “does not mean that the Central Bank of Sudan is withdrawing from the foreign-exchange market or stopping its interventions.” It said the bank would continue to provide foreign currency through the banking system and meet eligible importers’ requests in order to stabilize the foreign-exchange market.

However, economic observers and experts, according to press reports, say the developments go beyond a simple administrative decision. They point to the war that has continued since 2023, which has devastated Sudan’s productive base and left the economy almost entirely dependent on imports, while exports have sharply declined and gold smuggling has become widespread.

They also point to the dominance of military institutions and influential actors over the currency market, including extensive speculative activity, which they say has undermined monetary measures.

Experts argue that addressing the exchange-rate crisis cannot be achieved through decisions to liberalize or restrict the currency market alone. It requires fundamental structural reforms to rebuild production, end the war and curb corruption. Otherwise, predictions that the dollar could reach 10,000 pounds may become reality, while citizens’ purchasing power continues to erode.

A Cry Reflecting Living Conditions Under the Pound and Inflation

In a scene reflecting the scale of the daily hardship faced by Sudanese people, a citizen wrote an emotional message to relatives pleading for assistance. He described feelings of helplessness and embarrassment, but said the reality had become “insane” and beyond what people could bear.

His message read:

“I honestly don’t know where to begin, because the cost of living has become beyond imagination. The crushing rise in prices is frightening. I’m truly embarrassed, but things have become insane... I swear to God, we are trying as much as we can to get through this in the best way possible, hoping to secure even a glimpse of what can be made available for me and the children. But the traders’ hand remains stronger. Prices have reached terrifying levels that inspire deep fear, and our ability to cope can no longer keep up with the support I hope you can provide, which allows us to get through, even for a while.”

The citizen listed shocking prices reflecting the surge in Sudan’s markets: a kilogram of lentils costs 10,000 pounds, rice 12,000 pounds, sugar 8,000 pounds, a pound of cooking oil 8,000 pounds, and a kilogram of flour 5,000 pounds, with a sack reaching 45,000 pounds. Bakeries have also raised the price of bread to two loaves for 1,000 pounds.

He added that he could no longer afford his children’s basic needs, saying they were now “torn between food and university and school expenses.” A single medical examination costs around 30,000 pounds, he said, while the cost of medicines places an additional burden on an already collapsing household budget.

What Can Ordinary Citizens Do?

Amid the collapse, Sudanese citizens have limited options for easing the burden as much as possible. These include further cutting consumption by buying only essential goods, giving up anything considered a luxury and temporarily putting home renovations and improvements on hold.

Community initiatives can also provide some relief, including family or neighborhood solidarity funds, as well as neighbors pooling purchases to reduce costs and share expenses. Citizens can also monitor in-kind or cash assistance provided by humanitarian organizations.

Another avenue is demanding greater transparency through social media and pushing for genuine oversight of prices and measures to break traders’ monopolies. Communication and coordination with Sudanese expatriates and communities abroad can also be strengthened and better organized, as they often form a vital safety net for many families, particularly in supporting community kitchens and neighborhood food initiatives.

Journalists, meanwhile, can be urged to place the deteriorating cost of living at the forefront of their coverage.

But the fundamental solution remains beyond the ordinary citizen’s control. It depends on ending the war, restoring economic stability, reforming monetary policies and rebuilding domestic production to reduce dependence on imports.

For now, family and community support remain the only lifeline preventing an even deeper humanitarian collapse.