Sudan's Currency Hits Record Low Amid Intensifying Conflict and Economic Crisis

As the civil war in Sudan continues to intensify, the value of the Sudanese pound (SDG) has plummeted to a historic low, with its exchange rate against other foreign currencies falling sharply. This situation represents a critical juncture for the Sudanese economy, as the persistent depreciation of the currency, exacerbated by the ongoing conflict, exerts a profound impact on the nation’s economic stability and the livelihoods of its citizens.

The Sudanese pound, the official currency of the Republic of Sudan, is subdivided into 100 piastres and issued by the Central Bank of Sudan. However, the currency has been in decline since 1997, particularly following the imposition of economic sanctions by the United States. At that time, the exchange rate had already fallen to 53 pounds to the U.S. dollar, triggering severe economic issues, including foreign exchange shortages and rampant inflation. In response, the Central Bank of Sudan implemented a series of measures, such as increasing cash reserve requirements, in an attempt to curb inflationary pressures.

Following the independence of South Sudan in 2011, the country faced acute foreign exchange shortages. Having lost three-quarters of its oil resources and 80% of its foreign exchange revenue, Sudan’s economy suffered a significant blow. To mitigate the crisis, the government adjusted the official exchange rate from 6.09 to 18 pounds per dollar in an effort to stabilize the foreign exchange market. Nevertheless, the value of the Sudanese pound continued to slide, deeply affecting the nation’s economic health and the welfare of its people.

The ongoing civil war has further aggravated Sudan's economic situation. The conflict has caused extensive damage to the country's economic infrastructure, including transportation, telecommunications, and energy sectors. Simultaneously, the war has precipitated a humanitarian crisis, displacing millions of people and leaving them without access to basic necessities. This instability not only impacts Sudan’s domestic economy and livelihoods but also has far-reaching consequences for the security and stability of the entire region.

The depreciation of the Sudanese pound has also hampered trade and investment. Foreign exchange shortages and inflation have severely restricted imports and exports, creating significant hurdles for economic development. Furthermore, the persistent conflict has eroded investor confidence, further fueling economic volatility.

While the civil war in Sudan and the decline of the Sudanese pound may not have a direct connection to Taiwan, these events exert a profound influence on regional security and stability. As an integral part of the global economy, Taiwan must remain attentive to international developments, particularly those in Africa and the Middle East. Moreover, Taiwan can draw lessons from Sudan’s experience—particularly regarding economic stability and national security—to inform its own economic development and security strategies.