Banks in Sudanese have started moves to re-establish relations with foreign banks as the United States (US) prepares to remove Sudan from its state sponsor of terrorism (SSOT) list. Bankers and analysts say the process will likely be slow.
Restoring international banking links could provide a vital boost to an economy still in crisis more than 18 months into a political transition following the overthrow of former president Omar al-Bashir.
Banks in Sudan have been blocked from correspondent banking relationships involving US dollars and have had difficulty dealing in other major currencies for nearly two decades, forcing them to rely mainly on the United Arab Emirates dirham for transactions.
Importers have depended on expensive brokers, mainly in Dubai, to source foreign currency, passing on the extra cost to local consumers and helping to exacerbate inflation, now running at 220%.
Washington formally lifted economic sanctions against Sudan in 2017, but continued to classify the country as a state sponsor of terrorism.
Source: Reuters & Kemman