ADDIS ABABA, Sept 28 |
The two countries, which came close to war in April, agreed on Thursday to improve border security and foster trade, crucially to restart oil exports from the South through northern pipelines.
The border had been closed since South Sudan's messy secession in July 2011, and there has been almost no bilateral trade between the two neighbours.
Bank transfers were impossible to make in local currencies, because both governments did not recognise one another's currencies. Cross-border travellers had to change money first into dollars, often at a hefty premium on the black market.
The two countries now plan to set up a joint central bank committee to allow bank transfers and foster trade between them, according to an agreement published by the African Union late on Thursday.
Any commercial bank operating in one country will be granted a license as a foreign bank on the other side of the border, it said.
Both central banks will also cooperate on monetary policy and exchange rates to control inflation, one of the biggest economic challenges to both countries.
The neighbours will also coordinate banking supervision.
"The ... (committee) shall have the principal purpose of supporting financial stability and sound banking policies in the two states in order to enhance cooperation and promote trade and the economic viability of the two states," the agreement said.
So far just one large bank operates in both countries. Bank of Khartoum, a unit of Dubai Islamic Bank, has been expanding in the South but has unveiled plans to change its name. Many people in the South feel strongly about Sudan after decades of conflict.
Despite the agreements signed after three weeks of talks in Ethiopia, many issues remain unresolved, including marking the border and settling the fate of disputed border areas. (Reporting by Ulf Laessing; editing by Jane Baird)
Newer articles:
- South Sudan: Lost Boy's network ingrained in culture - Sioux Falls Argus Leader - 30/09/2012 03:56
- South Sudan's vice president visits refugees in Hurst - Fort Worth Star Telegram - 30/09/2012 00:53
- Sudan, South Sudan agree on metering to avoid disputes - Chicago Tribune - 29/09/2012 12:17
- NDSU student from South Sudan receives scholarship - In-Forum - 29/09/2012 01:44
- Oil Company: S. Sudan to Pump as Soon as Possible - ABC News - 28/09/2012 14:55
Older news items
- Sudan, South Sudan agree on metering to avoid disputes - Reuters - 28/09/2012 13:28
- Sudan and South Sudan strike 'partial peace' deal - MinnPost.com - 28/09/2012 10:27
- Lalley: Follow South Sudan journey - Sioux Falls Argus Leader - 28/09/2012 04:03
- South Sudan and Sudan agree on oil but not on border or contested area of Abyei - Washington Post - 27/09/2012 23:55
- Sudan, South Sudan Reach Agreements - Wall Street Journal - 27/09/2012 19:56
Latest news items (all categories):
- علاقة عقيمة من طرف واحد - 12/04/2024 01:25
- Press Release - International poetry initiative seeks poems on African experiences of migration - 04/04/2024 23:28
- South Sudan oil revenue dwindles - 31/03/2024 00:46
- The decline of Equatoria and emergence of Jieng tribal power in South Sudan - 30/03/2024 23:10
- Both SPLM-IG's No-extension and SPLM-IO's Extension Proposals are all means for No 2024 Elections - 24/03/2024 23:14
Random articles (all categories):
- South Sudan and Sudan Set Oil Deal - New York Times - 27/09/2012 00:38
- Egypt's Maait: All support to our brothers in South Sudan to attain development goals - 08/11/2023 07:42
- African Union Government: A Reservoir of Poverty and Duality - 12/07/2007 20:14
- Australian Police probe deadly Melbourne lake plunge involving a South Sudanese family - 09/04/2015 22:49
- NUMBERS AND BASIC MATHS IN SHILLUK (CHOLLO) LANGUAGE. - 27/07/2012 10:44
Popular articles:
- Who is the darkest person in the world, according to Guinness World Record? - 25/10/2022 02:34 - Read 30767 times
- No oil in troubled waters - 25/03/2014 15:02 - Read 21840 times
- School exam results in South Sudan show decline - 01/04/2012 17:58 - Read 20724 times
- NDSU student from South Sudan receives scholarship - In-Forum - 29/09/2012 01:44 - Read 17205 times
- With prisons full, South Sudan to introduce mobile courts to clear backlog of cases - 11/10/2012 11:29 - Read 14195 times