Economic Expert Proposes a Plan to Leverage Gold Resources

Professor Ibrahim Onour, an economics and finance expert at the University of Khartoum, revealed that speculation and rumors among currency traders accounted for approximately 55% of market prices by mid-2024, compared to 16% in 2023. This indicates that the exchange rate is largely influenced by non-economic factors.

Security Measures Against Currency Traders

Presenting his vision on utilizing gold in Sudan’s monetary policy at an economic forum, Onour suggested incorporating gold into the exchange rate mechanism. He emphasized the need for strict security measures against currency speculators, locally and internationally, including through electronic bank transfers. He also advocated for the activation of anti-money laundering and counter-terrorism laws to tackle economic sabotage.

Onour recommended that the Central Bank of Sudan establish a gold reserve by directly purchasing gold from miners at the global market price, eliminating intermediaries.

Proposals

Onour proposed introducing gold bonds and explained their use in managing the Central Bank’s liquidity to control the unofficial currency market, curb speculation, and manage inflation.

Deficiencies in Gold Resource Management

He criticized the government’s mismanagement of gold resources, citing increased smuggling and militia activities to stockpile gold during the war. Onour highlighted a growing link between the money supply and exchange rate fluctuations in the unofficial currency market, urging a robust monetary policy to stabilize the currency.

Recommendations

Onour called for measures to prevent gold resource exploitation, tackle corruption, and enforce regulations in the mining sector to plug gaps that allow for tax evasion.