Darfur: Tasees to establish ‘El Mustaqbal’ financial exchange to address liquidity shortage’

The Sudan Founding Alliance (Tasees) says it has decided to take initial steps to create a banking system in the areas under its control in Darfur, by establishing a financial exchange called El Mustaqbal, Arabic for ‘The Future’.

Mohammed Idris Khater, head of the civil administration in East Darfur, revealed in a statement to Radio Dabanga that a meeting was held in Ed Daein with the committee tasked with following up on the banking system project in areas controlled by the Rapid Support Forces. The meeting discussed arrangements for opening a branch of the bank in one of the region’s cities and the mechanisms for its operation, with the aim of reducing direct cash transactions and addressing the severe shortage of liquidity.

Khater explained that the current direction does not aim to establish a bank in the traditional sense, but rather to establish a financial exchange that operates on a semi-electronic system, where 60 per cent of its transactions will be done digitally to reduce reliance on paper money, noting that the project is awaiting a presidential decision from the Tasees Alliance, expressing his hope that this will contribute to alleviating the suffering of the public in sending and receiving money.

Doubts about the success of the move

In contrast, economist El Fatih Othman downplayed the chances of success for any step that goes beyond the framework of exchange bureaus to the establishment of a central bank, considering that the matter faces practical obstacles related to currency and international recognition.

Osman told Radio Dabanga that the Sudanese currency is under the control of the Central Bank of Sudan in Khartoum, and that any local authority will find itself forced to deal in Sudanese Pounds because it is easy to exchange for goods coming from northern and central Sudan, noting that dealing in the currencies of neighbouring countries will remain limited within the framework of border trade.

The economist stressed that any attempt to print a private currency would fail and be rejected, emphasising that establishing a central bank affiliated with an internationally unrecognised government would remain a mere formality, as it would be unable to perform sovereign functions such as controlling liquidity or overseeing international transfers in the absence of legal recognition. These developments come amidst escalating economic crises in the Darfur region since the outbreak of war in 2023, prompting local authorities to seek alternatives to facilitate financial and commercial transactions.

Inflation

As previously reported by Radio Dabanga, on Monday, the Central Bank of Sudan issued a decision to raise the ceiling for daily transfers between banks via interbank bank accounts from SDG 1 million to SDG 3million. Experts say this is due to inflation for people to cover basic life necessities.

The bank explained, in a statement seen by Radio Dabanga, that the decision comes within the framework of its efforts to expand the provision of electronic banking services, and in implementation of the state’s policies towards digital transformation.