Remittances of Sudanese Between Migrants and IDPs

Sudan’s civil war has forced more than 12 million people from their homes, with approximately 17% seeking refuge abroad. The remaining millions have been displaced internally, fleeing conflict zones to safer cities. The humanitarian crisis is dire, with at least 30% of children suffering from severe malnutrition.

Customers wait in line to receive remittances from abroad.

Before the war, over 10 million Sudanese migrants resided in countries worldwide, constituting 15% of the Sudanese population. A significant portion of these expatriates, more than 10%, resided in Saudi Arabia. Traditionally, they had sent remittances to their families back home. However, recent sanctions imposed by the United States, though lifted in 2020, have contributed to a decline in these remittances. While remittances fluctuated between $150 and $300 million in recent years, they peaked at $3.1 billion in 2008. This decline is largely attributed to the reliance of many expatriates on informal, non-banking channels for remittance transfers.

Government reports estimate that the total cash flow of Sudanese expatriates is around 6 billion USD. A report by the Central Bank of Sudan suggests that approximately 354 billion Sudanese pounds flows through the grey market, bypassing the formal banking system. Expatriates often rely on brokers who operate outside the banking system to exchange currency. These brokers capitalize on the significant difference between the official exchange rate set by the Central Bank and the higher rates on the grey market, particularly since the war-induced economic collapse and the theft of currency reserves.

To address the multifaceted crisis, particularly after the internationally recognized government regained control over some rebel-held territories, Sudanese economists proposed a radical solution: a currency redenomination. This measure aimed to eliminate counterfeit currency and reduce the prevalence of unknown currency origins, both of which contributed to the collapse of the Sudanese pound. Additionally, it sought to tackle the liquidity crisis exploited by black market traders, who had inflated financial transfer fees to as much as 20%.

Recently, the Central Bank took concrete steps towards this goal, deciding to redenominate the currency from the 1000& 500-pound denomination. The bank also urged citizens to deposit their money in bank accounts, aiming to reduce the circulation of counterfeit currency and do not encourage its use in everyday transactions.

Amidst this economic turmoil, the plight of displaced Sudanese citizens remains dire. Those living in camps within Sudan and refugees abroad have lost their livelihoods and face immense hardship. The currency redenomination, while necessary, adds another layer of complexity to their already challenging situation.

Fardous, a Sudanese refugee in her thirties, was once a working professional and homeowner in Sudan. She enjoyed a relatively comfortable life. However, the war forced her to flee her homeland, leaving her stateless and destitute.

As a refugee in Egypt, Fardous faces numerous challenges. While she receives financial support from relatives abroad, this is insufficient to meet the needs of her extended family, which includes dozens of women, children, and men. Compounding the issue, she has been unable to find employment due to her refugee status and lack of external assistance.

Fardous highlights the dire conditions faced by displaced Sudanese, both within the country and abroad. Whether in refugee camps or integrated into host communities, Sudanese refugees endure immense hardship. She emphasizes the disproportionate impact of the war on women, who often endure the most of the suffering.

Despite the challenges, Fardous remains hopeful for a future where she can return to her homeland and rebuild her life. She yearns for peace and stability, longing for the day when her family can be reunited.