Sudan, Russia explore local currency trade settlement to cut forex reliance

August 17, 2024 (PORT SUDAN) – Sudan and Russia are in talks to use their local currencies for settling bilateral trade, aiming to reduce dependence on foreign currencies, Sudan’s state news agency SUNA said on Saturday.

A high-level delegation from Russia’s central bank met with officials from the Central Bank of Sudan to discuss the potential move, which could bolster trade between the two countries.

The talks also covered potential joint investments in sectors such as precious metals, including gold. Sudanese and Russian banks could provide financing for such ventures, SUNA reported.

While official data is scarce, bilateral trade between the two nations is estimated to be between $400 million and $500 million annually.

Sudan has been actively seeking Russian investment, particularly in the gold mining sector. However, this industry has been shrouded in secrecy and allegations of corruption.

The central banks also discussed establishing correspondent banking relationships and opening branches in each other’s countries to facilitate trade. Additionally, they plan to share financial and banking expertise, with a focus on adopting new technologies to enhance banking services.

In February of the previous year, the leader of the Sovereign Council, Abdel Fattah al-Burhan, consented to implement an agreement concerning the establishment of a naval base on Sudan’s Red Sea coastline. In exchange, he sought to promote economic ties between the two nations, in addition to strengthened military collaboration.