Sudan is facing a severe shortage of already hard to obtain letters of credit (L/Cs) according to local media, which is reporting that the shortage may even be exacerbated.

This is because a number of Sudanese banks have recently been notified by their counterparts in China, Europe, Asia and Middle East that their accounts will be closed.

Tremendous difficulties

A group of Sudanese importers and exporters told the Sudan Tribune that they face "tremendous difficulties" obtaining L/Cs from foreign banks.

Analysts meanwhile say that the closure of Sudanese accounts by foreign banks will compound traders' problems, making incoming and outgoing wire transfers to and from Sudan much harder to come by.

Official letters

At least three Sudanese banks have received official letters informing them that financial transactions and trade between them and foreign banks have been suspended.

The director of the inspection department of the Central Bank of Sudan, Asmaa Abdul-Rahman Khairi, has confirmed that some Sudanese banks have had their accounts closed abroad.

Compound difficulties

These latest developments compound the difficulties Sudanese traders have had obtaining L/Cs since US sanctions were imposed on Sudan in 1997 by the Clinton administration.

The sanctions restrict financial dealings with Sudan or institutions owned by the Khartoum government, which complicates the country's access to international financial markets and US dollars.

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