Sudan Withdraws Small Banknotes as Inflation Weakens Pound’s Value

KHARTOUM, July 4, 2026 - Sudan’s Central Bank has announced the withdrawal of small-denomination banknotes from circulation, giving citizens a three-month period to deposit the affected currencies into commercial bank accounts as inflation continues to erode the purchasing power of the Sudanese pound. The measure targets 1, 2, 5, 10, 20, and 50-pound notes, which have become increasingly insignificant in everyday transactions due to rising prices and the depreciation of the national currency. The withdrawal process will run until July 30, 2026, after which the affected banknotes will lose their legal tender status and will no longer be accepted for settling financial obligations. Until the deadline, the notes will remain valid but can only be exchanged through deposits into bank accounts at their face value. Direct cash exchanges between individuals and banks will not be permitted. The Central Bank said special measures will apply in areas affected by severe insecurity and disruptions to banking operations, allowing authorities to assess each situation and protect citizens’ rights to recover the value of their withdrawn currency. The decision comes amid Sudan’s deepening economic crisis, marked by high inflation, currency depreciation, and the impact of ongoing conflict on financial services. Meanwhile, a separate currency exchange program involving 500- and 1,000-pound notes has already been completed in Khartoum, Al Jazirah, and White Nile states, while the process remains delayed in conflict-affected areas where banking activities have been disrupted.