Sudan’s currency is weaker than it has been in years
The Sudanese pound has been losing value rapidly in recent months. The actual exchange rate currently stands at about 7,500 pounds per dollar, compared to about 4,100 in May. By comparison, before the war broke out in April 2023, the dollar was valued at about 600 pounds.
The scale of the problem is bigger than the unofficial exchange rate alone suggests. Sudan is currently operating under conditions of de facto economic separation. The army controls Khartoum and a significant part of the north and east of the country, while the Rapid Support Forces (RSF) maintain control over large areas of Darfur. As a result, the state no longer has full control over its production base, trade, or sources of foreign currency.
This is particularly serious for Sudan, whose economy depends largely on exports of raw materials and agricultural products. Data from UNCTAD (United Nations Conference on Trade and Development) show that in 2024, the value of goods exports were worth approximately $3.1 billion, compared to $4.9 billion in imports. The trade deficit therefore reached around $1.8 billion.
The economy is collapsing as the war continues. Exports and Imports Are Under Pressure
Until recently, Sudan’s economy depended mainly on exports of gold, live animals, agricultural products, and gum arabic. Today, all of these pillars have been disrupted. The country’s authorities do not have full control over key mining areas and trade routes. The war, now in its fourth year, is devastating the economy and blocking economic development.
According to the World Bank, government income declined from about 10 percent of GDP in 2022 to less than 5 percent in 2024–2025. The economy contracted by 29.4 percent in real terms in 2023 and by another 14 percent in 2024. Estimated growth of 3.1 percent in 2025 should therefore be seen primarily as a rebound from a very low base, rather than a return to normal economic functioning.
Sudan is dependent on import prices for the production of its resources. In the current situation, this creates problems. The weakening Sudanese pound is driving up the real cost of purchasing food, fuel, medicine, and machinery. This increases business costs, while companies are increasingly looking for ways to settle transactions in dollars or move them outside the official banking system. As a result, the existing crisis is becoming even deeper.
Sudan needs money in the formal banking sector
From an economic perspective, it appears that Sudan’s economy needs strengthening of its financial sector. However, the current situation in the country is having the opposite effect.
This creates a vicious cycle. The less money that enters the formal system, the wider the gap becomes between official and unofficial exchange rates. This puts greater pressure on businesses and households to avoid the official foreign exchange market. The World Bank has previously noted a persistent significant gap between the official and exchange rates, as well as a shortage of foreign currency. The situation is now deteriorating further.
Under these conditions, the exchange rate becomes another channel through which the economic crisis deepens. Without regaining control over export flows, government revenues, and the financial system, even an increase in production in individual regions is likely to have only a limited impact on the country’s overall economic situation.
