Darfur, Kordofan markets shrug off Sudanese Pound’s fall as ‘trade picks up’

Markets in Nyala, the capital of South Darfur, elsewhere in Darfur, and Kordofan in RSF/Tasees-controlled areas, have reportedly largely escaped the surge in prices seen in Khartoum and eastern Sudan following the sharp depreciation of the Sudanese Pound (SDG), traders say. Local price rises are concentrated mainly in staple grains, as poor rainfall has reduced agricultural production.

Trader Ibrahim Hamdan says the Dollar is currently trading at about SDG 650,000 in Nyala through the Bankak app, compared with about SDG 460,000 in cash transactions. The gap between the two rates has had little effect on the prices of most goods in local markets, he says.

The most noticeable increases are in staple grains, which Hamdan attributes to poor rainfall and lower agricultural output. Disruptions or the detention of trucks carrying goods from eastern Sudan have also contributed, to a limited extent, to higher prices by affecting supplies reaching Nyala.

Meat prices, by contrast, remain affordable, Hamdan says. A kilogramme of mutton costs about SDG 24,000, while beef costs around SDG 15,000.

He describes trading conditions in Nyala as stable, with a growing population helping to revive commercial activity across the city’s markets.

Relative stability in Tasees-held areas

Journalist Mohamed Saleh El Bashir says prices have generally risen in areas of Darfur and Kordofan controlled by Tasees, but remain below those in areas controlled by the army, based on his observations.

Sugar provides an illustration. A kilogramme costs about SDG 7,000 in Tasees-controlled areas, compared with roughly SDG 10,000 in army-held areas, despite the latter having sugar factories and import routes.

El Bashir tells Radio Dabanga that the difference is largely explained by exchange rates. For more than a year, the Dollar has traded at around SDG 460,000-470,000 in Tasees-controlled areas, before rising to about SDG 490,000-500,000 over the past two days. In army-controlled areas, meanwhile, the Dollar has risen above SDG 900,000.

He expects prices in Tasees-controlled areas to remain relatively stable, helped by the availability of Dollars and multiple sources of imported goods.

Markets in these areas rely on three main supply routes. Some goods enter from South Sudan through border crossings, while North Darfur relies on supplies from Libya. Parts of West Darfur, including El Geneina and Zalingei, obtain some of their supplies through markets in El Geneina.

Trade between these areas does not depend entirely on currency transfers through banking apps, El Bashir says. Some traders move goods in both directions, while some transactions are conducted in Dollars. This reduces the need to convert Dollars into Sudanese Pounds through formal or parallel markets.

El Mustaqbal and Dollar transfers

The opening of branches of Tasees-affiliated El Mustaqbal Bank in several cities in Darfur and Kordofan is another factor affecting the supply of Dollars, El Bashir says. The bank offers services for receiving, depositing, and withdrawing foreign currency.

Because the bank has branches in more than one country, Sudanese can transfer Dollars to its branches in the region and withdraw them in Dollars, rather than converting them into Sudanese Pounds. This, he says, increases the supply of foreign currency and helps keep the exchange rate relatively stable.

Note: This report has been translated from Arabic with the assistance of artificial intelligence tools, and subsequently reviewed and adapted by a human editor before publication.