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Saudi Arabia deposits $250m into Sudan’s central bank

Saudi Arabia deposits $250m into Sudan’s central bank

The financial grant is part of a package with the UAE worth $500m announced in April

Saudi Arabia has deposited $250m into the central bank of Sudan to support its financial position, the Saudi Finance Ministry said in a statement on Tuesday.

The financial grant is part of a package with the United Arab Emirates worth $500m announced in April. Both countries pledged an overall $3bn in aid, with the rest going towards fuel, wheat and medicine.

The grant is aimed at alleviating pressure on the Sudanese pound and achieve stability in its exchange rate, the ministry said.

In April, mass protests led the Sudanese army to topple President Omar al Bashir.

However, Sudan’s economy is still haunted by Bashir’s legacy — the penalties imposed for his support of militant groups and for the offensive he launched to crush rebels in the western region of Darfur.

Because Sudan is still listed by the United States as a state sponsor of terrorism and has $1.3bn of IMF arrears, it is unable to tap the IMF and World Bank for support. Sudanese banks have struggled to re-establish correspondent relationships with foreign banks.

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