The US links the return of Sudanese banks to ending the war and forming a civilian government

The US Treasury Department rejected a request from Sudanese authorities in Port Sudan to reintegrate the Sudanese banking system into the global financial system, a move reflecting the international community's firm stance toward the warring parties in Sudan. Washington has linked this reintegration to the fulfillment of key political and security conditions, primarily ending the ongoing war and forming a civilian-led transitional government.

A historical background of isolation and hope

This rejection comes within the context of a complex relationship between Sudan and the international financial community. For decades, Sudan suffered near-total isolation due to US economic sanctions imposed since the 1990s during the rule of Omar al-Bashir's regime, which was designated a state sponsor of terrorism. These sanctions posed a formidable obstacle to economic development, denying the country access to international finance and foreign investment and hindering essential financial transfers.

Following the December 2018 revolution that ousted al-Bashir, Sudan experienced a gradual opening, culminating in December 2020 when the United States officially removed Sudan from its list of state sponsors of terrorism. This decision opened the door to considerable hope for reintegrating the Sudanese economy into the global economy, and the country began taking serious steps toward obtaining relief from its massive debt through the Heavily Indebted Poor Countries (HIPC) Initiative. However, the military coup in October 2021, and the subsequent outbreak of war in April 2023 between the Sudanese army and the Rapid Support Forces (RSF), shattered these hopes and set the country back to square one, with international aid and debt relief programs frozen.

Washington's conditions and details of the rejection

According to informed sources, Patrick Stewart, Deputy Director for African Affairs at the US Treasury Department, conveyed the rejection to the Sudanese side during the Spring Meetings of the International Monetary Fund and the World Bank in Washington. The request had been submitted by the Governor of the Central Bank of Sudan, Amina Mirghani, who attempted to persuade US officials of the financial reforms undertaken by the authorities in Port Sudan despite the ongoing war. However, the US position was clear: Stewart laid out three essential and non-negotiable conditions: an end to the war, the achievement of a comprehensive peace agreement, and the formation of a civilian-led transitional government acceptable to the Sudanese people and the international community.

The economic and human impact of continued isolation

The continued isolation of the Sudanese banking system is exacerbating the country's devastating economic and humanitarian crisis. It directly impedes the delivery of international humanitarian aid and makes it difficult for relief organizations to operate within Sudan. It also prevents Sudanese expatriates from sending vital remittances to their families, which are a lifeline for millions of citizens. At the macroeconomic level, this situation is paralyzing foreign trade, driving up inflation, and causing the local currency to plummet, further intensifying the daily suffering of ordinary citizens.

Geopolitical dimensions and the Iranian arms issue

This rejection coincided with other developments that further complicated the situation. The California Attorney General's office announced the arrest of an Iranian citizen with permanent residency on charges related to brokering an arms deal (drones, bombs, and ammunition) suspected of being linked to the Sudanese military. This case reinforces American and international concerns about the nature of the external alliances of the parties to the conflict in Sudan and adds a geopolitical dimension to the financial pressures being exerted, as Washington seeks to prevent Sudan from becoming an arena for regional proxy conflicts.