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Saturday, February 8, 2025

Reshaping Perspectives and Catalyzing Diplomatic Evolution

Running out of cash and closing banks… a terrifying scenario for the Sudanese

Over the past few days, some branches of Khartoum banks have been victims of burglary and vandalism, amid the collapse of Sudan’s National Banking Services (EBS) operator for the fourth consecutive day, with the suspension continuing of all banking application services. , which has deprived many people in the African country of purchasing their daily food and medicine needs.

The collapse of electronic payment services

In the latest report, the “Takween” committee of the Sudanese Engineers Union revealed that electronic payment services in banks have been halted due to the absence of an effective plan to enable the Bank of Sudan and commercial banks to continue this service in the event of an emergency.

In a report released on Tuesday, the committee noted that the Bank of Khartoum app, which is the most widely used in the country, works intermittently and provides limited services.

He also said that the app of the so-called “Okash” affiliated with Omdurman Bank has resumed work in a limited way, a few days after the start of the war, but is suffering from fluctuations in electricity, with the difficulty of providing the necessary banking services to Sudanese to manage their livelihoods amid the horrors of war.

She also confirmed that “MTN” company’s “Fawry” app and “Momo” app work in a limited way and were affected by the company’s downtime, noting that “these apps have stopped working. operate due to war, clashes and robbery, which has prevented a large proportion of Sudanese from accessing their money in banks.” .

Meanwhile, the “Western Union” company for financial transactions confirmed that “due to recent developments in Sudan, international money transfer services have been suspended in Khartoum and other affected areas until new order”.

Since April 15, the two parties to the conflict have exchanged accusations of having facilitated and perpetrated looting and robberies in several branches of banks in the capital and other cities, while depositors feared losing their money.

Organized gangs specializing in robberies, known locally as “Nigers”, are currently multiplying in view of the state of security chaos in the country, and the escape of hundreds of prisoners since the start of the clashes, according to the “BBC”. British. website.

A fire broke out last week at the Central Bank of Sudan, which has 17 branches spread across the country’s different states, prompting it to confirm that depositors’ funds in the banking system are “safe”, and that thefts from certain commercial bank branches do not affect these deposits.

Short of money

With banks closed and electronic payment services collapsing, Sudanese are facing a severe crisis of cash needed to support themselves, given the ongoing battles.

In recent years, Sudanese have preferred to rely on electronic apps to exchange their money rather than trading in cash, but with the outbreak of war in mid-April, the cash liquidity crisis was exacerbated by the delay or non-payment of wages in the country, according to an interview with Sudanese researcher Salah Hamid on the site “Sky News Arabia”.

According to Hamid, “the flight of citizens from Khartoum or Sudan to neighboring countries requires a lot of cash, which many do not currently have in a country where around 65% of the population lives below the poverty line”.

He continued, “The Sudanese are currently suffering from lack of cash and lack of local liquidity, since the outbreak of the clashes which shut down banks and prevented them from accessing their savings.”

The willingness of the Sudanese people to procure the necessary local money has prompted some beneficiaries to take advantage of these difficult circumstances by selling the local currency in exchange for the dollar at a low price, according to foreign reports.

Fleeing from Khartoum has become very difficult, as it requires a lot of cash in Sudanese currency, and this is no longer available to many after the shutdown of banks and their electronic services, according to the Sudanese researcher.

What happens to the deposits?

On the crisis front, the Sudanese Banking Association issued a statement yesterday Tuesday stating the following:

• All customer balances and financial information are fully retained.

• We seek to restore banking services in all states; And in Khartoum if the conditions are met.

• We regret and condemn the exposure of certain bank branches to burglary and vandalism without taking into account their role of service to the public and preservation of the deposits of the Sudanese.

• We hope that the competent authorities will make every effort to protect bank branches in all states so that they can continue their role in serving the people and the economy of Sudan.

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Arab Desk
Arab Desk
The Eastern Herald’s Arab Desk validates the stories published under this byline. That includes editorials, news stories, letters to the editor, and multimedia features on easternherald.com.

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