After 20 years, longstanding U.S. sanctions on trade and financial flows were
revoked in October 2017, considering Sudan’s progress in cessation of hostilities in
internal conflicts, improved cooperation on regional stability and counterterrorism, and
improved humanitarian access. However, Sudan remains on the U.S. list of State
Sponsors of Terrorism (SSTL), blocking progress towards badly needed debt relief.
Arrears to the Fund are large (SDR 966.3 million). Economic conditions have been
challenging since the secession of South Sudan in 2011, and the associated loss of the
bulk of oil exports. Loose fiscal and monetary policies are fueling high inflation and
could increase external imbalances over the medium term. Reserves remain very low and
external financing relies on support from Gulf states.
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