SDG - Sudanese Pound

The Introduction of the Sudanese Pound

The Sudanese Pound, with the currency code SDG in the foreign exchange market, officially became the currency of Sudan in 1992. However, it wasn't until 2007 that it became the legal tender of the country.

Before the introduction of the Sudanese Pound, Sudan used various other currencies such as the British Pound (GBP) and the Egyptian Pound. In 1957, the Sudanese government began issuing the first Sudanese Pound, and from 1958 to 1978, it was pegged to the US Dollar (USD).

However, in the 1990s, the Sudanese Pound was replaced by the Sudanese Dinar (SDD), but this only lasted for a short period before being phased out in 1999. In 2007, the Sudanese Pound was reintroduced and became the official currency once again after a peace agreement between the Sudanese government and the Sudan People's Liberation Movement.

Features and Denominations of the Sudanese Pound

An interesting feature of the Sudanese Pound is its division. Each Sudanese Pound (SDG) is divided into 100 piasters (also called qirsh in Arabic). The banknotes of the Sudanese Pound are issued in denominations ranging from 1 to 50 pounds, while the coins come in denominations from 1 to 50 piasters. This currency is not pegged to any other currency and circulates freely, making it a floating currency that is subject to volatility.

This means that the value of the Sudanese Pound can fluctuate rapidly based on the country's economic situation. Notably, when South Sudan separated from Sudan in 2011, the Sudanese Pound faced significant instability, as Sudan's economy was heavily impacted by the loss of a large portion of its oil revenue.

Sudanese Pound banknote denominations:

• 1 Sudanese Pound

• 5 Sudanese Pound

• 10 Sudanese Pound

• 20 Sudanese Pound

• 50 Sudanese Pound

• 100 Sudanese Pound

• 200 Sudanese Pound

Sudanese Pound coin denominations:

• 1 piastre (Qirsh)

• 5 piastres

• 10 piastres

• 25 piastres

• 50 piastres

The Role of the Sudanese Pound for Sudan and South Sudan

Although Sudan and South Sudan have been separated since 2011, the Sudanese Pound continues to be used as the legal currency in both countries. This reflects the economic link between Sudan and South Sudan, even though the two nations are politically distinct.

Additionally, the Sudanese Pound also reflects changes in the national economy. Over the years, this currency has faced numerous challenges, including severe depreciation and an unstable economic situation. In particular, the fact that the Sudanese Pound is not pegged to any other currency has made its value vulnerable to external factors, such as global economic crises or fluctuations in oil prices.

Exchange Rate of the Sudanese Pound

The exchange rate of the Sudanese Pound (SDG) currently experiences significant fluctuations and instability compared to major international currencies such as the US dollar (USD) and the euro (EUR). In 2008, a pivotal moment in the history of the Sudanese Pound occurred when it was no longer pegged to a fixed basket of foreign currencies and switched to a floating exchange rate system.

This decision led to a period of rapid depreciation of the Sudanese Pound in its early years. However, thanks to economic reforms and support from international organizations like the International Monetary Fund (IMF), the Sudanese Pound has gradually stabilized and recovered.

Currently, the exchange rate of the Sudanese Pound fluctuates significantly and lacks the stability of many other currencies. For example, the exchange rate may fluctuate around 1 USD being equivalent to over 450 Sudanese Pounds, highlighting the substantial difference in value between the Sudanese Pound and stronger currencies.

This disparity reflects the economic challenges the country faces, including high inflation, foreign currency shortages, and difficult economic conditions caused by external factors such as internal conflicts and the secession of South Sudan.

However, in the context of the country's reconstruction and stabilization efforts, the Sudanese Pound still plays a crucial role in maintaining economic stability. While it is not the strongest currency, the Pound still reflects the government's and Sudanese people's efforts and perseverance in reforming and maintaining the national economy.

In recent years, the exchange rate of the Sudanese Pound has demonstrated the country's resilience in overcoming crises. Economic reforms have helped stabilize the Pound, but many challenges remain for the government in maintaining a stable exchange rate and restoring the economy. The exchange rate of the Sudanese Pound will continue to be an important factor in assessing the strength of Sudan's economy in the coming years.