The Sudanese Pound (SDG) last week depreciated to an all low against the U.S. dollar and was trading at SDG 2,900 to the dollar, reflecting the deteriorating economic situation occasioned by ongoing war between the army and paramilitary RSF.
According to several economics experts, the last few weeks have witnessed a massive outflow of funds by traders and businessmen outside Sudan, leading to an unprecedented increase in demand for dollars. This surge in demand for hard currency coincides with a wave of Sudanese migrating abroad, exacerbating the economic crisis.
A resident of the city of Atbara in River Nile State, Seed Ahmed Mohammed Ali, reported to Radio Tamazuj that prices had increased by 100 percent, indicating that traders are no longer able to purchase new goods due to the recession in the markets. Consequently, the prices of basic commodities have risen significantly.
“There is a significant increase in the daily needs of families such as oil and sugar, compared to the rising exchange rates of the dollar and the Saudi Riyal, which has now reached 800 pounds,” he said.
An economist, Dr. Mohammed Al-Nair, told this publication that the living conditions in Sudan have deteriorated significantly since the outbreak of the armed conflict over a year ago.
“The decline in the value of the Sudanese pound was not noticeable initially but worsened over time, which is expected in countries suffering from armed conflicts,” he stated. “The government was supposed to take measures to mitigate this deterioration, such as controlling gold smuggling and channeling its revenues into the public treasury, identifying essential goods, and suspending the importation of luxury items.”
Dr. Al-Nair emphasized that such steps could have improved the trade balance and reduced the budget deficit.
Regarding rising fuel prices, the economist suggested that the government intervene to offer fuel at 25 percent lower prices compared to private companies, which could alleviate the impact of rising prices of goods and services.
“The increase in rent and transportation costs in safe states has placed an additional burden on citizens,” he highlighted.
Dr. Al-Nair emphasized that the significant rise in the cost of living across the country has increased pressure on citizens, underlining the urgent need for effective government measures to address the current economic crisis which has been aggravated by ongoing conflict and economic disruptions.