Sudan Government: Forms Currency Crisis Cell Amid Pound Collapse

• On Monday, August 31, 2026, the Sudanese government formed a cell to manage exchange rate issues, chaired by Finance Minister Dr. Jibril Ibrahim.
• The cell aims to provide urgent solutions to the crisis, which has seen the Sudanese pound experience a record decline against foreign currencies.
• This depreciation is partly attributed to a Central Bank of Sudan decision granting banks more flexibility in exchange rate adjustments and purchasing export proceeds, with the US dollar trading at 6600 pounds.
• The decision emerged from the third meeting of the National Committee for Economic Management, chaired by Prime Minister Kamil Idris, which discussed the currency's impact on citizens' livelihoods.
• Other government measures include focusing on increasing production in mining, agriculture, and livestock, and promoting manufacturing to boost exports and reduce import reliance.

The primary objective of this initiative is to mitigate the severe repercussions stemming from the accelerating rise in foreign currency prices across the nation.

The Sudanese government announced on Monday, August 31, 2026, its decision to establish a specialized cell tasked with managing critical exchange rate issues and their broader implications. This new body, which will be chaired by Finance Minister Dr. Jibril Ibrahim, is designed to bring together various expert entities to formulate and implement urgent, effective solutions aimed at stabilizing the national currency. The primary objective of this initiative is to mitigate the severe repercussions stemming from the accelerating rise in foreign currency prices across the nation.

The formation of this cell comes amidst a period of unprecedented decline for the local Sudanese pound against a basket of international currencies. This record depreciation has been significantly influenced by a recent policy adjustment from the Central Bank of Sudan, which granted commercial banks increased flexibility in setting exchange rates and acquiring proceeds from exports. On the day of the government's announcement, the US dollar was reportedly trading at 6600 Sudanese pounds, underscoring the urgency of the economic situation.

The decision to form the Sudan government's currency crisis cell emerged from the third meeting of the National Committee for Economic Management. Chaired by Prime Minister Kamil Idris, the committee convened to address the persistent depreciation of the national currency and its profound impact on the daily living conditions of Sudanese citizens. Discussions during the meeting focused intensely on the erosion of the national currency's value and the subsequent strain on people's livelihoods, highlighting the need for a robust Sudan economic crisis response.

Dr. Graham Abdel Qader, the Undersecretary of the Ministry of Culture, Information, and Tourism, confirmed that the committee's deliberations centered on these critical economic challenges. The establishment of the Sudan exchange rate management committee, led by Finance Minister Jibril Ibrahim, was identified as the most prominent among several resolutions adopted to confront the escalating financial instability.

Beyond the immediate focus on exchange rate management, the National Committee for Economic Management also outlined a broader strategy for economic recovery. These Sudanese pound depreciation measures extend to a concerted effort to boost domestic production and productivity across key sectors. Specific emphasis was placed on enhancing output in mining, agriculture, and livestock industries, which are seen as vital for the nation's economic resilience.

Furthermore, the committee's resolutions included a commitment to encouraging manufacturing industries. The aim is to foster local production that adds significant value to exports, thereby reducing the country's reliance on imports and strengthening its trade balance. This multi-faceted approach underscores the government's recognition that addressing the currency crisis requires both direct intervention in foreign exchange markets and long-term structural economic reforms.

The establishment of the Sudan government forms currency crisis cell signifies a critical step in the nation's struggle against severe economic headwinds. The explicit mandate to provide urgent and effective solutions to the exchange rate crisis, coupled with broader plans for increasing production, indicates a comprehensive approach to the Sudan economic crisis response. The involvement of the Central Bank of Sudan FX policy in granting banks greater flexibility has been a contributing factor to the current record decline, making the new cell's oversight crucial.

This development is particularly significant for citizens, whose living conditions are directly impacted by the eroding value of the national currency. The government's stated intention to address the rapid increase in foreign currency prices and its effects on people's livelihoods highlights the humanitarian dimension of the ongoing economic challenges. The success of this new committee, chaired by Finance Minister Jibril Ibrahim, will be pivotal in determining the future stability of the Sudanese economy and the welfare of its population.

Lawyers should advise clients operating in Sudan to closely monitor upcoming regulations and policies from this new exchange rate management cell, as they could introduce new foreign currency controls, import/export restrictions, or impact financial reporting and cross-border transaction compliance.

Source: Original reporting via Sudan Tribune