The war that erupted in Sudan in April 2023 has profoundly reshaped the economy of West Darfur State. Among its most visible consequences has been the growing use of the Central African CFA franc alongside the Sudanese pound, driven by the continued depreciation of the national currency, chronic cash shortages, and increasing dependence on cross-border trade with Chad. The Central African CFA franc (XAF), known locally as the “Chadian franc,” is the official currency of Chad, Cameroon, the Central African Republic, Gabon, Equatorial Guinea, and the Republic of the Congo. Issued by the Bank of Central African States (BEAC) and pegged to the euro at a fixed rate, the CFA franc has retained a degree of stability that contrasts sharply with the rapid decline of the Sudanese pound.
Al-Katkata Market: From the Shadows to the Centre of Commerce
For years, Al-Jenaynah maintained a small informal foreign exchange market that operated largely out of public view due to restrictions imposed by successive governments on currency trading. The outbreak of war dramatically altered that landscape.
Currency exchange activity has since expanded on an unprecedented scale. Dealers now operate openly from a designated marketplace known locally as Al-Katkata Market, which has emerged as one of the city’s busiest commercial centres, attracting traders, money changers, transport operators, and travellers from across the region. As the market grew, local authorities under Rapid Support Forces control (RSF) facilitated the formation of an association of currency dealers aimed at organizing the trade, regulating market activity, and addressing the growing influence of speculation on exchange rates.
Three Exchange Rates for One Currency
The value of money increasingly depends not only on the currency itself but also on the method of payment.
Before the war, 1,000 CFA francs exchanged for roughly 5,000 Sudanese pounds. The sustained depreciation of the Sudanese currency has since pushed the franc to unprecedented levels. Today, 1,000 CFA francs trade for about 40,000 Sudanese pounds in cash transactions.
The worsening liquidity crisis and the emergence of multiple payment methods have created a fragmented currency market, effectively producing three separate exchange rates for the same currency. Transfers made through Bankak, Sudan’s most widely used mobile banking application, value 1,000 CFA francs at approximately 48,000 Sudanese pounds. Transactions conducted with large-denomination Sudanese banknotes are exchanged at around 40,000 pounds, while payments made with smaller-denomination notes command about 43,000 pounds. These disparities reflect the deep distortions affecting Sudan’s monetary system, where the value of money increasingly depends not only on the currency itself but also on the method of payment. Meanwhile, commissions for Bankak transfers have risen to nearly 30 percent of the transferred amount, encouraging many traders and consumers to abandon digital transactions in favour of direct cash payments in CFA francs. The trend has further strengthened the franc’s role in everyday commerce across West Darfur, underscoring how war has transformed both the region’s monetary landscape and its trading networks.
A Border Currency Becomes Everyday Money
The border town of Adré has effectively become a dry port for commerce between Sudan and Chad. Most foodstuffs and consumer goods entering Sudan are purchased in Chadian francs, increasing demand for the currency.
Khalil Ahmed Omer, Director of Trade and Finance, West Darfur State
The franc is no longer confined to currency traders. It is now widely accepted across markets and retail shops throughout West Darfur, where many businesses conduct transactions in both CFA francs and Sudanese pounds. Some merchants now price their goods exclusively in francs, viewing the Chadian currency as more stable and less vulnerable to daily fluctuations.
Merchants interviewed by Atar said the franc has become a preferred store of value as the Sudanese pound continues to lose purchasing power at an accelerating pace. Its use has spread well beyond wholesale commerce to ordinary daily transactions in restaurants, grocery shops, and other businesses, many of which now adjust their pricing in line with movements in the currency market.
Khalil Ahmed Omer, Director of Trade and Finance in West Darfur State, attributes the growing demand for the franc directly to expanding trade with Chad. Speaking to Atar, he said the border town of Adré has effectively become a dry port for commerce between Sudan and Chad. Most foodstuffs and consumer goods entering Sudan through the Adré crossing, he explained, are purchased in Chadian francs, increasing demand for the currency. He added that speculation in the foreign exchange market, combined with the profiteering of some traders, has further fuelled price inflation and exchange-rate instability.
Market Distortions
Not everyone agrees that the franc’s appreciation reflects underlying economic fundamentals. One currency trader, who requested anonymity, argued that the franc’s soaring value stems primarily from distortions within the local market rather than genuine economic factors. He noted that the franc often strengthens even when the US dollar remains stable—a pattern he believes indicates speculative activity driven by a relatively small group of major currency dealers.
He explained that West Darfur imports the overwhelming majority of its food and consumer goods from Chad, while Sudanese exports consist largely of limited quantities of onions, charcoal, groundnuts, and hides. Together, he estimated, these account for no more than five percent of total bilateral trade.
Sudan once exported significant quantities of gold and gum arabic, he said, but wartime disruptions have sharply reduced production, shrinking export revenues and placing even greater pressure on demand for CFA francs.
During a visit to Al’Geneina’s currency market, Atar found the US dollar trading at approximately 4,200 Sudanese pounds, while the franc continued to appreciate against the pound. Traders said this demonstrated that the franc’s value is increasingly shaped by local supply and demand and cross-border commerce rather than movements in global currency markets.
New Monetary Measures
The RSF has instructed international humanitarian organizations operating in West Darfur to distribute cash assistance in CFA francs rather than Sudanese pounds.
In an effort to alleviate the liquidity crisis, the Sudanese Agency for Relief and Humanitarian Operations—established by the RSF in September 2025 to replace the Humanitarian Aid Commission—has instructed international humanitarian organizations operating in West Darfur to distribute cash assistance in Chadian francs rather than Sudanese pounds. The directive forms part of a broader package of monetary restrictions aimed at reducing pressure on the local money supply, reflecting the profound transformation of West Darfur’s economy over the course of the war.
Another indication of these monetary shifts has been the widespread circulation in recent months of newly issued 1,000-pound banknotes, locally known as the “Ta’sis”, named after the Ta’sis coalition, led by the RSF and allied political and armed groups, which controls most of the Darfur region. Initially, many currency dealers refused to accept the notes, believing they were counterfeit or otherwise invalid. Local authorities later intervened, declaring them to be legitimate legal tender and assuring the public that accepting them discharged financial obligations. The intervention helped expand their circulation, although some traders remain reluctant to accept them.
Three New Banks
In an effort to ease pressure on the foreign exchange market and reduce currency speculation, the authorities administering West Darfur have begun reviving the state’s banking sector by facilitating the opening of three new banks in Al-Jenaynah.
Observers say the initiative is intended to channel a greater share of financial transactions back into formal banking institutions and reduce reliance on the parallel currency market.
The city’s banking sector has witnessed rapid developments in recent weeks. In July, a banking delegation arrived from Nyala to complete preparations for the launch of Bank Al-Mustagbal (Future Bank), which has temporarily established its headquarters in the former Livestock Bank building and has already begun opening accounts and serving customers.
Renovation work is also underway at the former premises of the Bank of Khartoum in preparation for the opening of Al-Balad Bank, an independent institution unrelated to the bank of the same name operating in areas controlled by the Sudanese Armed Forces. Meanwhile, Al-Farid Bank has already begun operations and is accepting applications to open new accounts.
All three institutions operate in territories controlled by the RSF and therefore outside the jurisdiction of the Central Bank of Sudan.
