(MENAFN) The Sudanese pound experienced a significant collapse recently, with the exchange rate reaching 2,300 pounds per dollar on Tuesday, compared to 1,900 pounds at the end of the previous week. Traders attributed this sharp depreciation to substantial transfers made by local traders from bank accounts within Sudan. This surge in demand for foreign currency comes amidst widespread uncertainty regarding Sudan's future, exacerbated by a devastating war now in its fifteenth month.

According to one trader, the demand for foreign currencies spiked dramatically starting Monday evening, leading to continuous price hikes. He explained that they are receiving overwhelming orders that exceed their capacity to fulfill, contributing to the persistent rise in exchange rates.

Various explanations have been offered for the surge in demand for hard currencies. Some suggest it stems from individuals seeking to convert and transfer their savings abroad, coinciding with an increase in families fleeing the country. Others speculate that government actions, such as large-scale arms purchases and the need to cover expenses related to printing substantial amounts of Sudanese pounds abroad, have also influenced the currency's decline.

The depreciation of the Sudanese pound is compounding the hardships faced by Sudanese citizens within the country and those displaced by the ongoing conflict, exacerbating inflation rates that have soared above 500 percent according to independent reports. This economic turmoil underscores the profound challenges confronting Sudan amid the conflict and political instability, impacting the daily lives and livelihoods of its people both locally and across its borders. 

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