Mixed Reactions to Decision Granting Monopoly Over Gold Trade
Sudan Events – Rahab Abdullah
Economic experts and specialists have expressed divergent views regarding the Emergency Economic Committee’s decision to restrict the purchase and marketing of gold to a single government entity, which would in turn commit to providing the foreign currency importers require.
Economic adviser Dr. Abu Bakr Al-Tijani argued that smuggling cannot be effectively curbed through security measures in a country with vast borders, but rather through offering competitive prices for products that are otherwise smuggled. In a WhatsApp post on the “Economic Forum” group monitored by Al-Ahdath, he wrote: “Raising the price of the smuggled product is more effective than spending heavily on security to prevent smuggling… because massive expenditures can be undone by a simple bribe at the border.”
Dr. Yasser Jamal added that in a country like Sudan, the issue cannot be solved through surveillance given the many temptations, but through policies and incentives for gold producers. He acknowledged that government monopoly over gold could be beneficial if managed properly, stressing that the state should purchase all produced gold at competitive rates to combat smuggling.
However, Yousif Abdulrahman recalled that the same step was previously taken when the Central Bank of Sudan monopolized gold purchases. The result, he noted, was that the bank bought gold pegged to the black-market dollar rate, which in turn pushed miners to hike the dollar’s value daily in the parallel market—ultimately forcing the bank to abandon its monopoly over gold exports.
Former head of the Animal Resources Bank and former director of the National Agency for Export Development and Financing, Ahmed Babiker Hamour, tied a solution to the foreign exchange crisis to Sudan successfully exporting 100 tons of gold annually and securing the full proceeds—something he said would guarantee exchange rate stability and deliver broader economic benefits.
Banking expert Walid Dalil dismissed the solutions as repetitive and ineffective, emphasizing instead the need to combat corruption.
Meanwhile, economist Mohamed Al-Khatem Tamim highlighted that Sudan recorded a trade deficit of $608.7 million in the first quarter of 2025, with exports totaling $704.1 million compared to imports exceeding $1.3 billion. He noted that gold revenues dominated exports, accounting for 63.8%, while foodstuffs and fuel led the import bill. The UAE topped the list of Sudan’s gold importers, while China remained the largest supplier of goods to Sudan.
