Sudan suffers severe cash shortage and steep interest rates

Residents in North Kordofan’s capital of El Obeid are grappling with a severe cash liquidity crisis. There is a significant shortage of cash in banks, with one trader from the El Obeid Crops Stock Exchange telling Radio Dabanga, “Most banks lack cash liquidity, while the interest rate on transfers have surged to 15 per cent.”

The liquidity crisis is attributed to the paramilitary Rapid Support Forces’ (RSF) demand for fees from cargo trucks in cash or at an interest rate sometimes exceeding 20 per cent. This has intensified the financial strain on local businesses and residents.

In Nyala, the capital of South Darfur, traders are facing similar problems. They state that banks have gone out of service in all areas controlled by the RSF, leading to an increase in interest rates for banking services.

Facing a severe cash shortage and soaring interest rates, El Geneina, the capital of West Darfur, is struggling. The cost of transferring money through banks has reached 25 per cent of the transfer value, exacerbating the economic woes.

Observers attribute these issues to the suspension of banking services in areas controlled by the RSF. In contrast, areas under the control of the Sudanese Armed Forces, including the administrative capital Port Sudan, are experiencing relatively better financial conditions due to more stable banking operations services.