Full Breakdown
Sudan’s Currency Collapse Deepens Inflation Crisis Amid War
By Drooid · · How we work
Core Event: Currency Depreciation and Surging Prices
Since the conflict between the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF) began in April 2023, the Sudanese pound has lost more than 90 % of its value. Black-market rates rose from roughly 600 pounds per U.S. dollar before the war to 7,500 pounds per dollar by September 22, while the official rate later passed 8,000 pounds per dollar, a sixteen-fold increase. The depreciation has driven consumer prices upward, with the annual inflation rate reported at over 41 % in July 2026, down from 51 % in June.
Background & Context: War-Driven Economic Disruption
The war has crippled production, exports, and the banking system, cutting foreign-currency earnings and forcing businesses and households to compete for scarce dollars. The United Nations Development Programme (UNDP) estimates Sudan lost $6.4 billion in GDP in 2023 and that the economy has shrunk by more than 40 % since the conflict began. One-third of businesses have closed, and agricultural output has fallen sharply as the RSF controls large swaths of farmland in West Darfur and South Kordofan.
Data & Statistics
- Exchange rate: 600 pounds/$ (pre-war) -> 7,500 pounds/$ (Sept 22) -> >8,000 pounds/$ (2026)
- Inflation: 41 % (July 2026) vs. 51 % (June 2026)
- GDP loss: $6.4 billion (2023)
- Poverty: Extreme poverty rose from 48 % (2023) to 59 % (2025)
- Food insecurity: 19.5 million people (?41 % of the population) faced acute food crises between February and May 2026; over 5 million were at risk of famine
Human Impact: Families Struggle to Survive
Aisha, a 27-year-old tea-and-coffee vendor in Port Sudan, now charges 3,000 pounds for a cup of coffee—four times the pre-war price—yet earns 70,000–100,000 pounds a day, barely covering rising transport and food costs. Aid worker Maryam Ibrahim says the currency’s decline has “eroded household purchasing power,” forcing families to cut meals, delay medical care, withdraw children from school, and borrow essentials.
Official Statements & Responses
Finance Minister Gibril Ibrahim pledged to bring inflation below 60 % by the end of 2026, citing recent UNDP data. Economic analyst Mohyeldin Mohamed urged short-term measures—boosting domestic food production, improving tax collection, and channeling gold revenues into official foreign-currency earnings—alongside longer-term reforms in agriculture and the gold sector.
Conflicting Reports & Gaps
- Inflation figures: Al Jazeera cites a July 2026 inflation rate of over 41 %, while Kuwait Times reports 99 % in 2025 and a 176 % peak in 2024.
- Exchange-rate data: Al Jazeera provides a black-market rate of 7,500 pounds/$ on September 22, whereas Kuwait Times mentions the official rate later exceeding 8,000 pounds/$ without a specific date.
Verbatim Quotes
- “Before the war, a cup of coffee cost 1,000 Sudanese pounds ($1.70 at pre-war rates),” — Aisha
- “The response should combine immediate measures with longer-term reforms” — Mohyeldin Mohamed, economic analyst
What’s Next
The government’s inflation-target pledge sets a deadline of the end of 2026 for reducing inflation to no more than 60 %. Implementation will require coordination with the UNDP, adjustments to cash-assistance programs, and progress on the structural reforms outlined by analysts. Monitoring of exchange-rate movements and inflation trends will determine whether the target is achievable.