The strategy

Sudan: the RSF’s currency offensive to split the country (yet again)

Paramilitary groups are circulating new banknotes to exacerbate the divide between the Khartoum government and their own administration. The outcome remains unclear.

Una donna nel campo per sfollati a Tawila, nel Darfur del Nord (REUTERS)

4' min read

Translated by AI
Versione italiana

4' min read

Translated by AI
Versione italiana

NAIROBI – The aim is to widen the rift between the two Sudans: the one under the control of the regular forces and the de facto state established by the Rapid Support Forces (RSF) paramilitaries. The effect is likely to be more symbolic than substantial, although it adds an element of chaos to the country’s increasingly precarious situation. According to reports by the Reuters news agency and local media, the RSF began circulating freshly printed Sudanese pounds a few weeks ago, which are outside the control of the Central Bank of Khartoum.

The move has formalised a new dividing line across the country, the third largest in Africa, now split down the middle between a south-west under the control of paramilitary groups and a central-north-east – including the capital, Khartoum, and its Central Bank of Sudan – governed by the military administration: the only one recognised by the international community, although the RSF administration maintains its network of international relations and is seeking to consolidate its position as an alternative administration to that led by the army.

Loading...

Sudan’s political and currency split

Since April 2023, Sudan has been gripped by a war that broke out between the regular army and the RSF paramilitary forces, led respectively by General Abdel Fattah Abdelrahman al-Burhan and his counterpart Mohammed Dagalo, known as ‘Hemetti’. The conflict has resulted in what the United Nations classifies as one of the worst humanitarian crises on a global scale, with the current toll standing at over 12 million people displaced either within the country or abroad, and a total death toll that varies depending on the estimates: a US-sourced figure from 2024 put the death toll at 150,000, whilst figures released two years later raised the figure to nearly 400,000. Hostilities between the two factions broke out in Khartoum and spread to the rest of the country, culminating in the declaration of an independent administration under the control of the RSF: the so-called Tasi government, officially known as the Sudan Founding Alliance, which was unilaterally declared an independent state in early 2025, hostile to the old establishment in Khartoum.

The currency dispute has been ongoing since the start of the Sudanese war, increasing the pressure on an economy already ravaged by the conflict and a currency whose value has plummeted against the dollar. In 2024, the regular army itself ‘declared obsolete’ the old Sudanese pound, triggering the issue of banknotes in denominations of 500 and 1,000 pounds. The RSF has contested their validity, contributing to a cash shortage confirmed to Reuters by several witnesses in areas of the country under the militia’s control. Now, the introduction of the pound of so-called ‘Darfunistan’ – as the RSF refer to their own administration – represents an attempt to respond and assert their legitimacy in the currency sphere as well. The introduction of a de facto alternative currency “risks exacerbating the fragmentation of Sudan, but there are obvious practical limitations”, says geopolitical analyst Luciano Pollichieni.

Firstly, says Pollichieni, it is neither immediate nor particularly likely that the local community – “let alone those outside the areas controlled by the RSF – would be willing to use it for trading in any kind of goods”. Secondly, the flows of currency issued physically or digitally by the RSF could provide an additional means of tracking the investments flowing into RSF activities. All this, Pollichieni points out, “whilst the government in Khartoum is stepping up its diplomatic pressure on the group before various international tribunals, including the UN International Court of Justice and the International Criminal Court”.

The collapse of the economy and the Sudanese pound

The Sudanese economy is suffering the after-effects of the ‘war of the generals’, plunging into a crisis that has set back its growth aspirations by decades. A report published in the first half of 2026 by the United Nations and the Institute for Security Studies, a think tank, put the losses at around $6.4 billion and estimated that seven million people were pushed into ‘extreme poverty’ in 2023 alone, whilst incomes plummeted to their lowest levels since 1992 and poverty rates reached their highest peaks since the 1980s.

If the war were to continue until 2030, the report suggests, Sudan’s GDP could end up $34.5 billion below expectations, pushing the equivalent of 60 per cent of the population (52 million) below the extreme poverty line. The Sudanese pound has followed suit, forcing the central bank in Khartoum to carry out a series of emergency interventions to prop up its value. In the first half of July, the currency hit a low of 5,400 pounds to the dollar on the parallel market, coinciding with a surge in the price of gold to new record highs. The search for a safe haven – both technical and literal – from the decline of a currency that also risks splitting in two.

Copyright reserved ©
  • Alberto Magnani

    Alberto MagnaniCorrispondente

    Luogo: Nairobi

    Lingue parlate: inglese, tedesco

    Argomenti: Lavoro, Unione europea, Africa

    Premi: Premio "Alimentiamo il nostro futuro, nutriamo il mondo. Verso Expo 2015" di Agrofarma Federchimica e Fondazione Veronesi; Premio giornalistico State Street, categoria "Innovation"

Loading...

Brand connect

Loading...

Newsletter

Notizie e approfondimenti sugli avvenimenti politici, economici e finanziari.

Iscriviti