Sudan and Saudi Arabia to restore banking relations

Sudan and Saudi Arabia have agreed to re-establish banking relations, the official Sudanese news agency SUNA said, a move that may help restore confidence in Sudan’s economy after the lifting of U.S. economic sanctions.

The agreement, which will allow for banking transactions between the two countries, came after meetings between the Sudanese central bank governor and the Saudi Monetary Authority governor in Riyadh.

Representatives of major Saudi banks attended the meetings, signalling approval of the move to allow Sudanese users to open accounts at their banks.

Sudanese central bank governor Hazem Abdelqader said he expected banking transactions with Saudi Arabia in the next year to reach $600 million.

In October, the United States lifted 20-year-old sanctions against Sudan, whose economy has suffered since south sudan gained independence in 2011, taking with it three-quarters of oil output, the country’s main source of foreign currency.

The Sudanese pound has weakened against the dollar since Washington lifted its trade embargo, encouraging traders to step up imports and putting pressure on scarce hard currency.