Sudan’s currency has fallen to a record low, closing at 5,600 pounds to the US dollar.
The sharp decline has sent local gold prices soaring. The price of raw gold reached 630,000 Sudanese pounds per gram, while manufactured gold rose above 700,000 pounds per gram.
At the same time, international gold prices also climbed, with an ounce of gold reaching 4,190 US dollars.
Mutasim Mohamed Saleh, an official with the Gold Exporters Division, said the weakening Sudanese pound remains the main reason behind the surge in local gold prices.
He rejected claims that increased demand from fuel-importing companies was driving the rise in gold prices.
Economic analysts warn that if the currency continues to lose value, gold prices in Sudan could climb even higher and become more volatile.
Meanwhile, concerns are growing over gold smuggling. Technical estimates suggest that as much as 60 percent of Sudan’s gold production is smuggled out of the country.
Experts say the losses are significant for the economy, as gold accounts for more than 58 percent of Sudan’s official exports.
