ARAB AND WORLD
Fri 28 Apr 2023 8:21 pm - Jerusalem Time
The liquidity crisis in Khartoum exacerbates the suffering of the Sudanese
The Sudanese in Khartoum are facing a severe crisis in the cash liquidity necessary for their livelihood, with the closure of banks and the failure of many automatic teller machines, in light of the continuation of battles between the army and the Rapid Support Forces for two weeks.
"In the coming weeks, people will face a real crisis," Khaled al-Tigani, editor-in-chief of the Sudanese newspaper Elaph, told AFP by phone from Khartoum, referring to the lack of local criticism.
"People did not anticipate what happened. They were surprised by the developments and escalation," he added.
The battles have been taking place in the capital and many Sudanese cities since April 15, between the army led by Abdel Fattah al-Burhan and the Rapid Support Forces led by Muhammad Hamdan Daglo, in a relentless war on power, after they were allies since the 2021 coup, during which they overthrew civilians from power.
The fighting has so far killed at least 574 people and wounded thousands, according to data issued by the Sudanese Ministry of Health and the Doctors Syndicate. But the number of casualties may be more than that as a result of the ongoing fighting.
"Banks have been closed since April 15, which means that even those who have savings will not be able to access them," said Kholoud Khair, founder of the "Confluence Advisory" research center in Khartoum.
"In addition, workers in the informal sector who get their daily wages have not been able to get any money" since the fighting broke out, she added.
The war prompted the more than five million residents of Khartoum, whether citizens or foreigners, to either flee to other states or abroad, or to remain behind the walls of homes amid the whistling of bullets, the sound of explosions and air strikes, in light of the lack of food and the interruption of water, electricity and telephone services. And the Internet on the other hand.
The desire of the Sudanese to procure the necessary local cash prompted some of the beneficiaries to take advantage of these difficult circumstances by selling the local currency in exchange for the dollar at a high price.
"The value of the dollar now depends on how greedy the beneficiary is," Al-Tijani said.
"Before the events, the price of the dollar on the black market was 610 pounds, and two days ago I exchanged the dollar for 580 pounds," he added, explaining that those fleeing Khartoum exchanged the US currency at a lower rate than that.
Fleeing from Khartoum under these circumstances has become "extremely difficult because this requires a lot of liquidity in Sudanese currency."
Ashraf lived the experience when he decided to leave Khartoum with his family for Egypt, more than a thousand kilometers north of the Sudanese capital, and he was forced to submit to the conditions of the bus driver.
"I only had dollars with me, and he wanted Sudanese pounds because he used them to buy fuel," he told AFP. "In the end he agreed to take dollars, but he stipulated that the exchange rate be 400 pounds per dollar, while the official rate for one dollar is 600 pounds."
Sudan suffered throughout the rule of former President Omar al-Bashir, successive economic crises resulting from mismanagement on the one hand, and the country witnessed tribal conflicts and armed rebellion on the other hand, in addition to the international sanctions imposed on it.
Independent researcher Hamid Khalafallah explained that "fleeing from Khartoum or the country requires a lot of money in cash, which people do not have at the present time" in a country where about 65% of the population lives below the poverty line, according to a United Nations report issued in 2020.
Khalafallah indicated that when the war broke out, "the salaries for the month (April) had not yet been paid. We were only on the fifteenth day."
While citizens suffer from a lack of liquidity, prices have risen, especially public bus fares, which have increased, according to Khair, "by 500% due to need and the war economy," noting that this is also due to "the lack of fuel and the difficulty in providing it."
"I don't think the value of the dollar is really depreciating on the black market, but the demand for (local) cash is very high," said a foreign resident in Khartoum who preferred not to be named.
In recent years, the Sudanese have preferred to rely on electronic applications to trade their money instead of dealing in cash, according to Al-Tijani, but due to the constant internet disruption, the applications face technical problems and do not work regularly.
The "Western Union" company for financial transactions also confirmed, in a statement received by AFP, that "due to the recent developments in Sudan, Western Union's international money transfer services in Khartoum and other affected areas have been suspended until further notice."
Al-Tijani said, "People are now resorting to solidarity among themselves to meet the needs, and they are only betting on the end of the crisis."
For her part, Kheir said, the Sudanese were "left stranded and unable to move without money in their pockets."
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The liquidity crisis in Khartoum exacerbates the suffering of the Sudanese