The Central Bank of Sudan has announced that it will withdraw older 500-pound banknotes from circulation across the country, effective October 1, 2026. Holders of these notes have been given a three-month window to deposit them with commercial banks. This move is part of a larger currency-replacement program launched in December 2024, which aims to replace 1,000-pound and 500-pound denominations.
The withdrawal covers 500-pound notes issued in 2023 and earlier. Although they will remain legal tender until the end of business on December 31, 2026, they will lose their legal-tender status after that date. The central bank has cited Article 25(3) of the Central Bank of Sudan Act of 2002 as the legal basis for the withdrawal. This program targets regions not covered in the first two phases due to security constraints.
The latest phase of the currency-replacement program focuses on the Kordofan and Darfur regions. Residents in these areas can deposit the affected notes at branches of commercial banks operating in their regions at their face value between October 1 and December 31. The central bank completed the second phase in mid-May in Khartoum, Al Jazirah, and White Nile states.
The currency-replacement program is being implemented as Sudan's financial system faces severe pressure due to the ongoing war that began in April 2023. The conflict has disrupted economic activity, damaged infrastructure, and weakened purchasing power, complicating the functioning of the banking system. The central bank has urged holders of the affected notes, particularly in Kordofan and Darfur, to deposit them before the deadline.
From January 1, 2027, the affected banknotes will no longer be legal tender anywhere in Sudan and will not be valid for settling financial obligations or commercial transactions. The central bank has assured that the program will continue in other states where security conditions had previously prevented the exchange. This move aims to maintain the stability of Sudan's financial system.
The central bank's decision to withdraw old 500-pound notes is part of its efforts to maintain the integrity of Sudan's currency. The program has been designed to minimize disruptions to the financial system and ensure a smooth transition to new banknotes. Residents are advised to take advantage of the three-month window to exchange their old notes.
The Central Bank of Sudan has reassured the public that it is committed to ensuring the success of the currency-replacement program. The program's implementation will be closely monitored to ensure that it achieves its objectives and minimizes any potential negative impacts on the economy. The central bank will continue to provide updates on the program's progress.
Key points
- The Central Bank of Sudan will withdraw old 500-pound notes from circulation as part of a currency-replacement program.
- Holders of the affected notes have until December 31, 2026, to deposit them with commercial banks.
- The program targets regions not covered in the first two phases due to security constraints.
