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Sudan govt to control gold exports

March 1 - 2021 KHARTOUM
Sudanese gold for export (Social media)
Sudanese gold for export (Social media)

At a four day meeting the transitional government set its priorities for the year 2021: the economy, peace, security, foreign relations, and the democratic transition. The government also established state control over gold exports.

The Central Bank of Sudan (CBoS) will from now on purchase gold at global stock market prices. It will also establish a Sudanese gold exchange.

The governor of the Central Bank of Sudan (CBoS), Mohamed Zeinelabdin, said that more than 25.4 million dollars have been distributed to Sudanese banks. The managers of some of these banks said during a television programme on Saturday evening that the money was used to buy medicines, cooking gas and ingredients for bakeries.

Zeinelabdin announced that the CBoS will issue mechanisms for the use of international credit cards such as Visa and Master Card this week. CBoS will also launch auctions of foreign currencies for local banks and money changers this week.

Government plans

The government will resume negotiations with the Sudan People's Liberation Movement-North under the leadership of Abdelaziz El Hilu (SPLM-N), and communication with Abdelwahid El Nur, head of the Sudan Liberation Movement (SLM-AW).

The government seeks to prepare national elections, reform the pharmaceutical industry, expand the agricultural sector, establish a Internal Security Agency, form a unified professional national army (including rebels from rebel movements that signed the Juba Peace Agreement), secure voluntary return for displaced people and refugees, collect weapons and control unregulated vehicles.

The government aims to defuse the crisis with Ethiopia. This includes affirming Sudan's sovereignty over its territory, ensuring its water security, and strengthening Sudan's role in international and African forums.

More inflation

Economist and leading member of the Communist Party of Sudan (CPoS) Sidgi Kaballo said on Saturday that the new exchange rate for the Sudanese Pound will lead to more inflation. He also predicted that measures directed by the International Monetary Fund (IMF) will lead to higher prices for basic commodities.

Kaballo said that the only way to ensure stability of the exchange rate is to increase exports in order to bring in foreign currencies. He stressed the need to remove foreign trade and wholesale trade from people affiliated with the former regime.

The “unification” of the exchange rate should have been pre-empted by measures thatwould  decrease the exchange rate at the parallel market first, Kaballo said. The current stability of the exchange rate is temporary, he stated.

According to the economist, not introducing a new currency will exacerbate the economic crisis. He also noted that the government’s family support programme will last for only 18 months. He expects the programme will also lead to more inflation.

 


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