At a time Sudan’s future remains clouded with rapid political development, economic suffering and a liquidity squeeze returned to the scene with long ques building up in front of banks, bakeries and gas stations.
Visiting neighborhoods in Khartoum’s Omdurman city, an Asharq Al-Awsat correspondent discovered that people were rushing to stock on living essentials and cash.
Local banks, suffering from a cash crunch, are sticking to around a $40 withdrawal daily limit per person.
For traders, matters have been getting increasingly worse, with banks putting chequebooks and money transfers between local commercial banks on ice.
Referring to political instability, Khartoum-based financial consultant Hisham Alhaj said that the economic performance is directly linked to state institutions.
“Economic recession has not only affected the state, but also public and private sector workers,” Alhaj noted.
It is worth noting that the liquidity squeeze ailing the African state for over a year now is caused by a great drop in consumer confidence, especially in the country’s banking sector.
Well-off companies and individuals, fearful of poor management, corruption and bankruptcy, have chosen to hoard banknotes and not deal with Sudanese banks.
