Proposal to Retain Gold as Reserves at the Central Bank of Sudan

Economic expert Dr. Mohamed Al-Nayer proposed retaining domestically produced gold as reserves at the Central Bank of Sudan.

In an interview with Al-Ahdath, he called for increased gold production and efforts to reduce smuggling. He emphasized that gold could be kept at the Central Bank of Sudan as a safeguard for the stability of the national currency exchange rate, only to be used if there is a need for foreign currency to import essential goods, in which case part of the gold would be exported. He added, “If we can retain Sudan’s gold production in full or 50% of the production, it can build a significant reserve that ensures the stability of the national currency exchange rate.”

Dr. Al-Nayer stressed the importance of curbing the smuggling of goods such as gold, gum arabic, and other Sudanese products into neighboring countries, advocating for better control and enforcement.

He also highlighted the necessity of finding ways to prioritize imports and prevent the importation of luxury goods to address the exchange rate issue, focusing on directing foreign currency towards importing basic goods and reducing customs burdens by lowering duty rates on goods. He added that tax cuts lead to increased revenue, but excessive vertical increases result in a decrease in revenue collection.