Sudanese Pound Plunges to Record Lows as US Dollar Surges

The Sudanese pound (SDG) has plummeted to an all-time low against the US dollar (USD), with the exchange rate reaching a staggering 598.95 SDG per USD as of April 25, 2024 at 09:00:06 UTC. This means that 10 SDG can now only be exchanged for a mere 0.0166 USD, signaling a drastic devaluation of the Sudanese currency. The surging US dollar has wreaked havoc on Sudanese households, as the plunging value of the pound has made it increasingly challenging for people to afford even basic necessities.

Sudan is currently grappling with a severe humanitarian crisis, with the ongoing war between the Sudanese armed forces and the Rapid Support Forces (RSF) paramilitaries displacing over 8 million people, either internally or as refugees. The conflict has disrupted food production, leading to a staggering 46% drop in the country's food output last year and forcing Sudan to heavily rely on imported food. Experts are sounding the alarm about the risk of famine if the upcoming planting season is compromised, emphasizing the urgent need for funding and support to bolster local food production and avert a worsening crisis.

Why this matters: The plummeting value of the Sudanese pound and the country's reliance on imported food amid conflict-driven disruptions in local production have left millions of Sudanese facing acute food insecurity. The situation in Sudan underscores the devastating impact of conflicts on food security and the urgent need for international support to prevent a full-blown famine.

The global food security situation has deteriorated in 2023, with approximately 282 million people across 59 countries experiencing high levels of acute food insecurity. Conflicts have emerged as the primary driver of acute hunger in 20 countries or territories, affecting 135 million people. Sudan alone accounted for two-thirds of the additional 13.5 million people in need of urgent food assistance globally in 2023, with 20.3 million Sudanese confronting acute food insecurity due to the ongoing conflict and displacement.

The United Nations has described the global outlook for this year as "bleak," with the number of food-insecure people rising from 108 million in 2016 to 282 million in 2023. While the situation improved in 17 countries, including the Democratic Republic of Congo and Ukraine, the report noted that decreasing global food prices did not translate to low-income, import-dependent countries, and high debt levels limited governments' ability to mitigate the effects of high prices. The report emphasized the critical importance of humanitarian access and funding to address the crisis, particularly in conflict-affected areas like Gaza and Sudan.

Key Takeaways

• Sudanese pound plummets to record low of 598.95 SDG per USD, making basics unaffordable.
• Ongoing conflict in Sudan has displaced 8M, disrupted food production by 46%, risking famine.
• Global food insecurity rose to 282M in 2023, with conflicts as the primary driver in 20 countries.
• Sudan accounts for two-thirds of the 13.5M additional people facing acute food insecurity in 2023.
• UN warns of a "bleak" global outlook, emphasizing the need for humanitarian aid and funding.