Business
Sudan seeks to work with China in yuan – looking to ditch the dollar
(Reuters) – Sudan is in talks with China to see if the two countries can do business in Sudanese pounds and Chinese yuan, rather than U.S. dollars, Sudan’s central bank governor said on Wednesday.
The Sudanese pound has weakened sharply against the dollar on the black market since South Sudan seceded in July, taking about three-quarters of the country’s roughly 500,000 barrels per day of oil output, a major source of foreign currency.
China has been a major investor in both African countries in areas including construction and oil.
“We have submitted an official request to China to deal with them in Sudanese pounds and Chinese yuan, and it is possible that after a short while we could exit finally from the dollar,” Central Bank Governor Mohamed Kheir al-Zubeir told reporters.
“The dollar has become weak and is deteriorating.”
He said Sudan’s central bank was discussing the issue with China’s central bank, but did not give a timeline or other details about the proposed arrangement.
