Former Official: Obstacles Facing Central Bank’s Gold Monopoly
Sudan Events – Rehab Abdullah
Former Director General of the Sudanese Financial Markets Regulatory Authority, Dr. Shawqi Azmi, has warned that the Central Bank of Sudan’s decision to monopolize the purchase and trade of gold risks clashing with the instability of exchange rates and their surge in the parallel market.
Azmi explained that the main challenge facing the Central Bank lies in the volatility of the exchange rate, which may compel the bank to introduce a new rate known as the “gold dollar rate” to meet its obligations towards gold producers and traders.
Speaking to Al-Ahdath, Azmi stressed that the move requires extensive efforts from security agencies to combat smuggling, driven by two key motives: avoiding government fees and state levies, and circumventing the Central Bank’s pricing and settlement mechanisms for gold refiners.
He noted that “security bodies are well aware of the smuggling methods used by both Sudanese and foreign actors” and will exert efforts to counter them despite the difficulty, particularly as smugglers exploit Sudan’s vast borders to traffic people, livestock, crops, and even gold ore.
Azmi emphasized that until Sudan establishes and activates a gold exchange, the government should rely on trusted agents to purchase gold directly from producers and deliver it to the refinery.
