The Sudanese pound hit a new low on Wednesday, 21 October, at 10,000 pounds to the dollar on the parallel market, increasing the cost of imports and squeezing purchasing power in an economy devastated by war.
The currency has lost 20% in a month from a previous threshold of 8,000 pounds, according to currency dealers interviewed by Reuters. The official rate remains fixed at 4,200 pounds to the dollar, less than half the informal rate seen on Wednesday.
Before the conflict began in April 2023, a dollar traded at around 600 pounds. Nearly seventeen times as much local currency is now needed to buy the same amount of foreign currency on the parallel market.
Currency dealers attribute the latest fall to demand for dollars to finance imports. This week the government also raised the customs rate used to calculate duties on imported goods to above 5,600 pounds.
The depreciation directly raises the price of goods bought abroad, while many households have already lost their homes or incomes. Reuters reports that rising prices are putting basic foodstuffs out of reach for part of the population.
The war between the Sudanese army and the Rapid Support Forces has reduced output in the sectors that earned foreign currency. Gold exports, the country's main source of dollars, are also being eroded by smuggling.
The trend has accelerated since early September. Sudan Tribune reported a rate above 7,300 pounds on 5 September, then 8,800 pounds on 7 October on the parallel market.