Sudan’s gold is looking for buyers and fears of smuggling gangs

0
53


The Gold Exporters Division in Sudan has warned of losing revenue from gold production due to the absence of buyers, according to official media.

The Secretary-General of the Division, Abdel Mawla Hamid Al-Qaddal, also warned, according to the Sudanese News Agency, against the strong resurgence of smuggling and speculation at a time when the gold market in Sudan is witnessing conflicting statements that affect the economy and the living situation in the country.

The Sudanese official demanded that a clear mechanism be put in place to buy gold through the free and parallel payment system, so that the capital takes its full turn, allowing the continuity of hard currency flows.

Al-Qaddal also appealed to the authorities to secure Sudan’s borders, tighten control over ports and airports, and strike with an iron fist, for everyone who seeks to destroy the Sudanese economy.

Sudan is the third largest producer of gold in Africa, after South Africa and Ghana, with commercial mining bringing in $ 1.2 billion to the government last year, according to Agence France-Presse.

Sudan launched, last July, the first shipment of gold exports, which is a resource for the treasury of the country, which suffers from an acute shortage of foreign exchange.

The shipment to be exported weighs 2 tons, and its revenues are expected to reach about 300 million US dollars.

The “smuggling mafia” that includes mining companies affiliated with the defunct regime completely controlled the gold trade in Sudan.

Sudan’s annual production of gold is estimated at 100 tons at a value exceeding $ 5 billion, but small quantities enter the state’s public treasury.

Economists say that the inflation rate in Sudan has become one of the highest in the world, which threatens a state of hyperinflation unless Sudan controls the budget deficit and the money supply.

The government registered huge deficits in its budget as a result of fuel subsidies, and it funded that deficit by printing money.

This led to a depreciation of the currency against other currencies, pushing inflation to 230% year-on-year in October, according to the official statistics office.

In the last trading last week – Friday – the spot price of gold was down 1.6 percent to 1781.96 dollars an ounce, after earlier dropping to its lowest level since the sixth of July at 1773.10 dollars an ounce.





LEAVE A REPLY

Please enter your comment!
Please enter your name here