Cash runs out in Khartoum as Sudan battles to halt economic crisis
Rampant inflation, a lack of trust in the banking system and the central bank's policy of restricting money supply have contributed to the liquidity crunch
Many cash machines in the Sudanese capital of Khartoum have run out of banknotes as the government scrambles to prevent economic collapse with a sharp devaluation and emergency austerity measures. Rising demand for cash due to inflation, lack of trust in the banking system and the central bank’s policy of restricting the money supply to protect the Sudanese pound have all contributed to a liquidity crunch that has worsened in the past 10 days pending new banknote deliveries. The banknote shortage comes one month after authorities let the value of the pound slide from 29 pounds to the dollar to 47.5 pounds and announced measures to tighten spending. “I move from place to place until I find a money changer with funds because a large number of the cash machines are empty,” said Ahmed Abdullah, a 42-year-old government employee. “Why are we suffering like this to get our money?” Sudan has suffered from a lack of foreign currency since losing three-quarters of its oil output when the sou...
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