Sudan – Sudanese people have reverted to bartering and credit to secure their daily needs, given the lack of cash and the near-total collapse of the financial system. This situation is a consequence of the war that has been ongoing for more than two years.
In the city of Dilling in South Kordofan state, government employees confirm they haven’t touched a banknote in months. The Rapid Support Forces have besieged the area and other towns, bringing financial transactions and communication networks to a standstill. Bartering has become commonplace, with clothing and household appliances being exchanged for flour, rice, or fuel, and agricultural tools being traded for grain.
The fighting between the army and the Rapid Support Forces since April 2023 has disrupted the banking system. It has also led to the destruction and looting of bank branches. This has forced residents to rely on deferred payments, recording them in merchants’ ledgers until financial applications like “Bankak” become operational again.
In Omdurman, traders warn that holding cash has become dangerous due to the security breakdown. Meanwhile, the euro’s price on the black market has risen to around 3,500 Sudanese pounds, up from just 450 pounds before the war.
Experts confirm that Sudan was on the cusp of a more open economic transition before the outbreak of war. However, the financial collapse and the division of influence between the army and the Rapid Support Forces (RSF) have stalled any progress. While the military government in Port Sudan uses new banknotes, areas under RSF control still rely on older versions. This has entrenched a dual monetary system that reflects the reality of the division on the ground.
With weak internet connectivity, Starlink has become the only means of accessing digital services. Although banned in areas controlled by the military, the Rapid Support Forces control its operation in their areas of influence. The lack of bank accounts and smartphones also forces many to use others’ accounts, incurring fees of up to a quarter of the total.
Bartering and deferred payments remain the only options for millions of Sudanese. This comes amid a liquidity crisis, institutional collapse, and ongoing war. This situation has created one of the world’s worst humanitarian crises.
