Money transfer fees through Bankak, an electronic banking application operated by the Bank of Khartoum, have sharply increased in El Geneina, the capital of Sudan's West Darfur State. The fees have reached around 50%, according to traders and residents. This increase has significantly impacted trade, contributed to rising commodity prices, and disrupted commercial activity in the city. The situation has created challenges for residents and traders who rely heavily on these transfers for their daily transactions.
The current exchange rates in El Geneina market show that the US dollar is trading at around 4,600 Sudanese pounds. Meanwhile, 1,000 Chadian francs are selling for approximately 39,500 Sudanese pounds in cash. However, when transferred through Bankak, the same amount is worth around 70,000 pounds. This significant disparity has led to increased costs for traders and residents who depend on these transfers.
According to Omar Ibiylih, a currency trader in El Geneina market, fluctuations in exchange rates are attributed to movements in global markets. These include the Dubai market and the value of the UAE Dirham and US dollar, as well as fluctuations in the Sudanese pound amid high inflation. Ibiylih explained that traders rely heavily on the Chadian franc for commercial transactions due to close trading links between West Darfur and neighboring Chad.
Traders sometimes exchange Chadian francs for gold or other commodities of equivalent value due to the scarcity of Sudanese pounds. Ibiylih noted that the rising value of the Chadian franc relative to funds held through Bankak is driven by supply and demand. The absence of functioning banks in the state has contributed to a decline in the value of electronic transfers compared with cash.
Yousif Razaz, a resident of the city, described the practices in El Geneina's market as "usurious." He said that deducting half the value of a transfer sent through Bankak places a heavy burden on residents. Razaz argued that the practice is exploitative and unfair to customers and families. He added that the cost of transferring money through Bankak has continued to rise since the outbreak of war in El Geneina.
Another resident, Abdelmoneim Zakaria, described the increase in commodity prices in El Geneina as "frightening and outrageous." He said prices had risen further with the onset of the rainy season and reduced rainfall, compounded by the difficult living conditions created by the war. Zakaria noted that West Darfur's geographic location has made the state heavily dependent on Chad for trade through the Adré border crossing.
Zakaria also mentioned that the Chadian franc had reached record levels against the Sudanese pound, with 1,000 Chadian francs fetching around 40,000 Sudanese pounds. He stated that residents and traders are facing "various forms of financial speculation" amid continued instability in the foreign-exchange market. The situation remains challenging for those relying on money transfers through Bankak.
Key points
- Money transfer fees through Bankak have risen to 50% in El Geneina, West Darfur State.
- The increase in fees has affected trade, contributed to rising commodity prices, and disrupted commercial activity in the city.
- The absence of functioning banks in the state has contributed to a decline in the value of electronic transfers compared with cash.
