A study by the Center for Monetary Studies at the University of Oslo, Norway, revealed a grim picture of Sudan’s economy, indicating that the country has entered a phase of hyperinflation, as annual inflation rates surpassed 400 percent over the past year. This has led to the collapse of the social function of the Sudanese pound and its loss of role as a means of exchange, saving, and economic stability.
The report stated that the crisis is not only reflected in numbers but also in the loss of public confidence in the local currency, as daily transactions have shifted to foreign currencies, even in traditional local markets.
According to the study, traders and consumers now rely on foreign currencies to determine the prices of food items, rents, and daily wages. The Sudanese pound is no longer used for pricing or saving, confirming its exit from the real economic cycle. Citizens have also turned to storing foreign currencies or goods to protect their savings from the pound’s devaluation.
The study further noted that the Sudanese pound has become more of a political symbol than an economic tool. It recommended launching financial literacy programs, linking the pound to a basket of currencies or real assets, establishing an independent monetary authority, and providing direct cash support to affected households.
