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Sudan’s central bank blames US dollar price rise on gold companies

November 19, 2017 (KHARTOUM) - The Central Bank of Sudan (CBoS) on Sunday has revoked business licenses of a number of gold trade companies saying the decision was prompted by their involvement in currency speculations.

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The Central Bank of Sudan (CBoS) in Khartoum (Photo: Reuters)

Late last week, the Sudanese pound fell to a record low as the U.S. dollar price reached 28,2 SDG in the black market.

In a press release on Sunday, the CBoS said: “a decision was made to revoke the licenses of other companies working in the field of gold purchase and export”.

“This decision comes against the backdrop of speculations made in the Forex market during the past week” read the press release without elaborating on the number of companies affected by the decision.

The decision also included the imposition of administrative punishments and fines against a number of banks according to the Banking Regulation Act.

It is noteworthy that the CBoS on 12 November cancelled licenses of 6 private companies that were allowed to buy and export gold.

Last February, the CBoS licensed 13 companies to buy and export gold in a bid to curb the smuggling of the precious metal.

Sudan currently ranks second in gold production behind South Africa but aims to land in the first place by 2018.

Gold has become one of Sudan’s largest exports which partially compensated for the loss in oil revenues, which accounted for more than 50% of income until 2011 when South Sudan seceded, taking with it most of the country’s oil reserves.

(ST)