Establishing a National Gold Investment Portfolio: Tightening Control over the Precious Metal
Sudan Events – Rehab Abdullah
The Sudanese government is moving towards the establishment of a dedicated portfolio for gold, as Minister of Finance and Economic Planning Dr. Jibril Ibrahim revealed government arrangements to implement the Prime Minister’s decision on gold exports. The measure aims to safeguard gold as a vital economic resource and curb smuggling. He further disclosed plans to create an export mechanism (portfolio), with the Central Bank of Sudan continuing to purchase and export gold under existing arrangements until the new mechanism is in place.
A National Investment Portfolio
During an extended meeting attended by the Ministers of Minerals, Industry and Trade, the Governor of the Central Bank of Sudan, the Minister of State at the Ministry of Finance, and the Undersecretary of the ministry, the possibility of expanding the Central Bank’s current portfolio to strengthen its role in purchasing domestically produced gold was discussed. The meeting stressed the necessity of establishing a national investment portfolio fully owned by the state.
Economic expert Dr. Mohamed Al-Nayer argued that gold exports do not necessarily require a portfolio but rather a commodities exchange, which could be operational by early 2026. In the meantime, he suggested the establishment of a fund—either in foreign currency or local currency—to finance gold purchases if the Central Bank is unwilling to buy directly using its local resources. This fund could draw capital from the public, shareholders, or through investment certificates, thereby mobilizing resources outside the Central Bank’s reserves. Such a mechanism, he noted, would reduce inflationary risks, as large-scale purchases directly financed by the Bank could trigger monetary expansion.
A Positive Step
In contrast, economic expert Engineer Al-Tayeb Al-Jaali welcomed the creation of a dedicated gold portfolio, stressing that any decision enabling the state to regulate artisanal gold mining in particular is a positive one. He described the idea of a state-owned portfolio as excellent but emphasized that fair and competitive prices must be offered to artisanal miners to discourage smuggling.
“Gold is a highly sought-after commodity,” he said. “Either the state benefits from it by implementing effective policies, or traders and smugglers will profit—along with the countries to which gold is smuggled—if it is not wisely managed.”
Strict Regulations
Dr. Badr Al-Din Qureshi, First Deputy Governor of the Central Bank of Sudan, hailed the Cabinet’s decision to grant the Central Bank a monopoly over gold purchases and sales at international market prices. He clarified that the directive does not grant the Bank absolute exclusivity, as it allows for delegation under specific conditions. Such delegation, he explained, must be bound by strict criteria that define rights and obligations, along with transparency, fairness in selection, oversight, and accountability. To this end, he affirmed, the Central Bank could establish a portfolio to mobilize the necessary financial resources.
