Following the outbreak of war, people began seeking safe havens, heading in various and often overlapping directions both within and outside Sudan. Fleeing displacement within the country and seeking refuge abroad, they faced severe psychological and financial costs. It was not easy for them to move between cities and villages, covering long distances while carrying their money. A large bundle of Sudanese pounds could barely meet even basic needs. Some carried their small savings, others took as much as they could for survival, believing the war would soon end, while some were unable to carry anything at all.
Despite the bitter experiences of Sudanese people during the last years of the National Congress Party regime, particularly dealing with cash shortages and long queues at ATMs and banks, the April war brought even more severe consequences. Widespread looting of banks and theft of savings led to a significant portion of cash circulating outside the banking system, severely impacting people’s lives. For the first time, they had to buy their national currency on the black market—a practice previously reserved for foreign currencies.
Banking services, but...
Before the emergence of electronic banking services, financial transfers were often carried out through mobile phone credit sellers, turning this into a thriving business involving middlemen. Large amounts of money were exchanged through phone credit, with interest rates reaching 15 per cent. With the advent of electronic banking services, such as the “Bankak” app from the Bank of Khartoum and the “Fawry” app from Faisal Islamic Bank, people initially met these services with hesitation and distrust, especially due to the complex procedures that hindered their spread beyond the capital.
Users were often forced to travel to Port Sudan and undergo lengthy legal procedures to restore their accounts.
In North Darfur, particularly in the besieged city of Al-Fashir, cash is exchanged for digital currency at a rate difference of 30 per cent, sometimes even half of the total value.
After the war, displacement and migration increased, leading to a growing demand for electronic services. However, this also brought many technical problems. The Bank of Khartoum, which owns the “Bankak” app, had to implement major reforms to handle the influx of transactions, yet obstacles persisted. For instance, if an account was closed, it was difficult to recover due to repeated suspensions of the Bank of Khartoum. Users were often forced to travel to Port Sudan and undergo lengthy legal procedures to restore their accounts.
Many traders complained of frozen funds due to ongoing internet outages, which rendered accounts inoperable. As a result, many foodstuffs and medicines remained stuck in warehouses, either due to internet disruptions or the shortage of cash.
With cash becoming scarce in many parts of Sudan, emergency response teams, communal kitchens, and flood relief efforts now rely on digital transfer services. In North Darfur, particularly in the besieged city of Al-Fashir, cash is exchanged for digital currency at a rate difference of 30 per cent, sometimes even half of the total value.
Mohammed Ashari told “Atar” that he could not escape Al-Fashir with his family due to the vast price difference between cash and “Bankak”. “The money I had suddenly lost its value. No one would accept cash, and when I tried to convert it into “Bankak”, it was worth only half and wouldn’t cover my family’s travel expenses. So, we decided to stay and use it for daily needs.”
Mohammed AbdelMajeed, a student whose studies were interrupted by the war, living in El-Obeid, told “Atar”, “This period is extremely difficult. Besides the war, there is hunger everywhere. My older brother, who lives abroad, tried to send us help, but we couldn’t access the money due to internet outages. I had to leave El-Obeid to withdraw the cash, and now I’m facing another problem—how to get back to my family with the cash.”
Given the situation, some have resorted to bartering, much like traditional trade: a milking goat for a measure of sorghum, a bag of sugar for some meat and vegetables, and so on.
Tough times in both SAF and RSF control zones
Following the outbreak of war, people began seeking safe havens, heading in various and often overlapping directions both within and outside Sudan. Fleeing displacement within the country and seeking refuge abroad, they faced severe psychological and financial costs. It was not easy for them to move between cities and villages, covering long distances while carrying their money. A large bundle of Sudanese pounds could barely meet even basic needs. Some carried their small savings, others took as much as they could for survival, believing the war would soon end, while some were unable to carry anything at all.
Despite the bitter experiences of Sudanese people during the last years of the National Congress Party regime, particularly dealing with cash shortages and long queues at ATMs and banks, the April war brought even more severe consequences. Widespread looting of banks and theft of savings led to a significant portion of cash circulating outside the banking system, severely impacting people’s lives. For the first time, they had to buy their national currency on the black market—a practice previously reserved for foreign currencies.
Cash transfers via the “Bankak” app are cashed out by wholesalers at rates of 17,000 to 18,000 pounds per 100,000 pounds and then redistributed to other towns at higher rates, causing small businesses to halt.
Conversely, cash has become scarce in Darfur, where banks ceased operations early on as the region fell under RSF control. Adam Mohammed, currently residing in Egypt, told “Atar” that sending money to his mother in Darfur is extremely difficult. Cash transfers via the “Bankak” app are cashed out by wholesalers at rates of 17,000 to 18,000 pounds per 100,000 pounds and then redistributed to other towns at higher rates, causing small businesses to halt.
Life remains somewhat more bearable for those in Darfur’s towns, where people can move around to find cash. However, those in displaced person’s camps face numerous obstacles, starting with securing cash. Adam Rijal, spokesperson for the Coordination Body of Displaced Persons and Refugees, said camp residents lose 20,000 pounds per 100,000 pounds when converting money to cash.
Contraction of commercial activity in El-Obeid
Mubarak, a representative of Arsenal Transport Company in El-Obeid, North Kordofan state, was assigned to oversee the maintenance of the company’s trucks and buses, which have been idle since the start of the war. His initial inspection revealed sabotage and theft of many parts, forcing him to undertake repairs in order to move the vehicles to safer locations. However, local mechanics, auto-electricians, and spare parts suppliers refused bank transfers or demanded a surcharge to cover the cost of cash withdrawals, significantly increasing the company’s expenses.
In El-Obeid, a local pharmacist told “Atar” that the liquidity crisis has halved sales, with most remaining transactions conducted via bank transfers. The city is frequently besieged, with long queues outside shops where people offer bank transfers in exchange for cash.
A trader in the local market confirmed that the liquidity shortage has deeply impacted commerce, eroding trust in transactions. Previously, goods could be sold with payments transferred to suppliers later, but now everyone demands cash up front. Mohammed Awad Al-Karim, another trader, noted that state-owned fuel stations still in operation only accept cash payments, sometimes in amounts reaching billions of pounds. This has driven up demand for cash, turning it into a scarce commodity subject to hoarding and manipulation, exacerbating the crisis and creating a new economy around cash shortages.
The causes of the cash crisis are varied. The war in 2023 disrupted the start of the agricultural season, a time when El-Obeid usually sees commercial activity through bank loans covering farming and transport costs. However, none of these loans have been repaid, as the agricultural season failed, and transportation halted. Now, these loans are considered bad debts. Even though banks secured insurance and mortgage certificates, two harsh realities have emerged: insurance does not cover war-related damage, and banks cannot liquidate mortgages, as most property owners have fled the city. Property prices have plummeted, and courts, despite resuming operations, are unable to recover debts as many argue their clients cannot protect their assets amidst the lawlessness.
Most of the cash in the city has effectively vanished.
Banks are left with little more than paper records and electronic files of transactions, while the limited liquidity generated by the current market is quickly siphoned off by collectors around the city.
Commerce now relies heavily on personal savings, which rarely enter the banking system. Banks are left with little more than paper records and electronic files of transactions, while the limited liquidity generated by the current market is quickly siphoned off by collectors around the city.
One date merchant recounted that his truck carrying 600 sacks of dates was seized in Bara. The captors demanded three billion pounds to release the truck, and similar incidents have become common. In this environment, no vehicle can enter the city without paying billions to gangs and militias that have taken over state functions, depriving the market of the liquidity once used for commercial and banking activities.
Cash crisis in White Nile State
White Nile state, now isolated due to road closures, is also suffering from a severe cash shortage. Many residents rely on money transfers from abroad via the “Bankak” app. Omar Ahmed, a resident of Al-Jazira Aba, noted that the cash crisis began in August, and obtaining cash has become increasingly difficult, with fees sometimes reaching 10%. Previously, some shops provided cash without charge, but most have now turned to the Bankak app for daily needs.
The state’s banks, especially Bank of Khartoum branches, are overwhelmed with long queues of customers waiting to withdraw money. Yet the banks frequently lack sufficient cash to meet demand. “Sometimes I have to travel to Rabak hoping to find cash, but even there, it’s extremely difficult,” Omar explained.
He also mentioned that some Bank of Khartoum branches in White Nile have imposed a daily withdrawal limit of 50,000 pounds. Many people are now hesitant to deposit their money in banks. A shop owner in Al-Jazira Aba, speaking anonymously, told “Atar” that he offers a service to convert “Bankak” transfers into cash, charging a 4 per cent commission. However, he currently has no cash to provide, as his main sources—wholesale traders and fuel stations—have stopped operations.
A source at one of Bank of Khartoum’s branches in White Nile told “Atar” that the cash shortage began in late July due to the scarcity of flour and fuel, which are the state’s primary sources of liquidity.
A source at one of Bank of Khartoum’s branches in White Nile told “Atar” that the cash shortage began in late July due to the scarcity of flour and fuel, which are the state’s primary sources of liquidity. “Government employees are still receiving their salaries through the bank branches,” the source added. He denied any fixed daily withdrawal limit but explained that the cap is based on the cash available in the bank each day. The RSF’s blockade of the state has discouraged deposits, leading to rationing of withdrawals.
It’s worth noting that the Central Bank of Sudan has set a daily withdrawal limit of three million pounds per account across all banks.
