Lebanon Under Pressure to Dismantle the Parallel Economy and Exit the FATF Grey List

Sudan's national currency unity is under threat as new banknotes, issued by a parallel central bank in RSF-controlled areas, have begun circulating. The RSF-aligned government in Nyala has reappointed Hussein Yahia Jangol as governor of this parallel institution, allowing the use of banknotes bearing his signature while banning those signed by the official Central Bank of Sudan governor, Burai al-Siddiq.

Mohamed Hasan al-Taishi, prime minister of the parallel government, announced policies to build an integrated financial system. However, a source told Asharq Al-Awsat that the circulation of these new banknotes is not unprecedented, though it remains unclear if they were previously stored or newly printed.

Bankers and economists express concern not about the banknotes themselves, but about the authority controlling their issuance and circulation. They warn of potential impacts on economic policy effectiveness, confidence in the national currency, and overall financial system stability. The Central Bank of Sudan's ability to manage the money supply, ease pressure on foreign exchange, control inflation, and maintain exchange-rate stability is crucial. When cash circulates outside this authority, measuring the money supply becomes more complex, weakening the monetary authorities' ability to fight inflation and manage liquidity.

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The danger lies not in the banknote itself, but in the authority controlling its issuance and circulation, and in the possible impact on the effectiveness of economic policy, confidence in the national currency and the stability of the financial system.