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Sudan to receive $500 million deposit from UAE: Bashir

December 6, 2016 (KHARTOUM) - Sudanese President Omer al-Bashir on Tuesday has said that his country will receive a $500 million central bank deposit from the United Arab Emirates (UAE).

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Sudanese President Omer Hassan al-Bashir (C) flanked by Abu Dhabi Crown Prince Mohammed bin Zayed al-Nahyan (L) and UAE Vice-President Mohammed bin Rashid al-Maktoum (R) in Abu Dhabi on 22 February 2015

On Thursday, al-Bashir and his accompanying delegation concluded a four-day visit to the rich Gulf state where he discussed bilateral ties between the two countries.

In a meeting that lasted until the early morning hours of Tuesday, al-Bashir briefed the leadership office of the ruling National Congress Party (NCP) on the outcome of his visit to the UAE.

Following the meeting, NCP deputy chairman for party affairs and presidential aide Ibrahim Mahmoud Hamid said that al-Bashir informed the meeting that the UAE has agreed to deposit a $500 million with Sudan’s central bank (CBoS).

According to Hamid, al-Bashir also said the UAE has pledged to cover Sudan’s gasoline consumption for 6 month and to build a solar power plant that produces 1000 megawatts through the Build Operate Transfer (BOT).

The NCP deputy chairman further described the outcome of al-Bashir’s visit to the UAE as real support for the national economy and efforts to increase production.

It is noteworthy that al-Bashir’s visit to the UAE came amid popular unrest and civil disobedience following the government decision to lift oil, electricity and drug subsidy.

Sudan’s economy was hit hard since the southern part of the country declared independence in July 2011, taking with it about 75% of the country’s oil output.

In its latest consultation report on Sudan in October, the International Monetary Fund (IMF) said Sudan’s already low foreign exchange reserves dropped to 1½ month of imports.

Last month, CBoS introduced an incentive policy and increased the exchange rate in commercial banks and exchanges by 131%. As a result, the U.S. dollar exchange rate went up in banks to 15.8 SDG in comparison with to the official rate of 6.5 SDG.

As a result, the U.S. dollar hit another historic high against the pound on the black market settling at 18.8 Sudanese pounds.

(ST)