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Momodou
Denmark
11512 Posts |
 Posted - 25 Oct 2012 : 09:52:27
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Operation rob the Diaspora and their families and destroy the economy! Families are currently receiving less than what they should have received from the remittances being sent specially for the Eid. A few days ago the Danish kroner was up to 590 Dalasi for 100 DKK, now the families are only receiving 480 Dalasi for every 100 DKK. This is robbery! 
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‘OPERATION NO COMPROMISE ON FOREIGN CURRENCY HOARDING’
by Suwaibou Touray
Foroyaa: Published on Wednesday, 24 October 2012
The Office of the President of the Gambia has issued a directive launching what it calls 'Operation no compromise on foreign currency hoarding and speculation' with immediate effect, a media release from State House broadcast over state owned GRTS in Banjul reveals.
According to the release from State House", it has come to the attention of the Office of the President that speculators and some unscrupulous businesses are creating an artificial shortage of foreign exchange especially of the United States Dollar thereby causing its unprecedented appreciation against the Gambian dalasi with the sole intention of hiking prices of basic commodities and causing hardship to the people.
"Those involved in foreign exchange transactions including the Bureau de Change or Foreign Exchange Bureaus, Banks and Mobile Telephone Operators are hereby warned that very drastic action will be taken against any individual, or body corporate found culpable of hoarding of and speculating in foreign exchange, Said the release.
"This office reserves the right to close any business, Bureau de Change, Bank, or any company that is bent on sabotaging the economy of The Gambia without any further notice. Anybody found with foreign currency like the CFA and is not registered to deal in such will face the full force of the law in addition to forfeiting such to the State", the release warned..
According to this directive, a team of enforcement agents have been directed to investigate, monitor all Foreign Exchange Bureaus and unregistered agents, as well as any other institution, and are authorized to confiscate any US Dollar currency going out of the country without prior approval. They have the full authority to investigate, seize as well as prosecute those found to be hoarding any foreign currency especially the US Dollars.
The release urges everyone with foreign currency to save it in the Commercial Banks since it said all banks have facilities for the opening of foreign currency accounts and therefore, there will be no excuse for any institution, individual or group found with large cash amounts of any foreign currency especially the US Dollars, Euros, Pound Sterling or the CFA Francs.
As far as this release from state house is concerned, these measures will be in place until such time that the US Dollar returns to its true value of D28.00 per US Dollar.
The directive from state house implores on the Ministry of Finance, the Central Bank of the Gambia, the Gambia Revenue Authority, and the team of enforcement agents to apply these measures to the letter as this office would not allow greedy, unpatriotic and heartless people to hold the populace to ransom. It finally said anyone found violating these directives or not playing by the rules of honest trading practices will be prosecuted under the economic crimes law in addition to being banned from doing any business in The Gambia; that 'Operation no compromise on foreign currency hoarding and speculating is hereby launched with immediate effect.
The Gambian Dalasi during the period of this two months has depreciated against the US Dollar from D28 to 1 Dollar and as well depreciated against all other international currencies including the CFA Francs.
Editor's Note
Foroyaa is investigating the impact of the announcement and will inform readers accordingly.
Source: Foroyaa
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A clear conscience fears no accusation - proverb from Sierra Leone |
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Momodou
Denmark
11512 Posts |
Posted - 25 Oct 2012 : 09:55:08
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OPINIONS ON ‘OPERATION NO HOARDING OF FOREIGN CURRENCIES’
by Sarjo Camara
Foroyaa: Published on Wednesday, 24 October 2012
The inconsistency in the exchange rate of foreign currencies in the country has caused confusion especially at a time when many people are receiving remittances from relatives abroad leading to the fast approaching Eid al Adha celebrations.
This reporter visited different bureaus de change to find out how the business community or dealers of foreign currencies are progressing.
It has come to the notice of this reporter that there are different rates for different currencies in the market and people also continue to experience different treatments whenever they wish to change foreign currency.
Yesterday 22nd of October, this reporter received a 50 Euro note on behalf of a relative. It was stated by the sender that the money should be equivalent to D2150. However, to her surprise the agent gave her the 50 Euros instead of the Dalasi amount.
This reporter went to another bureau de change and she was told that they were not taking Euro yesterday.
At another bureau she met a young woman who told her that the dollar was at D27.00 and Euro at D35.00.
On the 23rd of October, this reporter went around and sought people's opinions on the drastic drop of the foreign currencies.
A young man who is doing business with his father opined that for today, they are buying Euro at D38.00 and selling it at D38.50, dollar D28.00 buying and selling at a28.50 dalasos and pound Sterling at D44.00 buying &selling D 44.50. This young man lamented that forcing the foreign currency to drop created a great loss for him. He said they were buying the dollar at 34.50 dalasi but now it has seriously dropped. So he said the monies they spent to purchase the dollar cannot be recovered and that they are now running at a loss. He stated that for transfers now they are taking D34.00 for 1 Euro. He stated that that's why they cannot give the buyers the amount they used to get from them.
Another young businessman has stated that he is buying dollar at D27.00 and selling it at D28.00.He noted that buying price for the Euro is D34.00 and the selling price is D35.00.
A young woman who is working in one of the financial agencies says she is buying dollar at D27.00, Euro at D35.00 and pound at D 44.00.
A middle age man who is running a forex bureau said he is buying Euro at D38.00, dollar at D28.50 and pound at D44.50.
Shortly before this reporter left this bureau, two people came in looking for CFA. The man told them that his CFA got exhausted. It came to the knowledge of this reporter that there is little CFA in the market, as many continue to notice the scarcity of CFA through dealers.
This foreign currency exchange operator asserts that imposing on dealers to forcefully appreciate the dalasi is not the solution to foreign currency control. He said government needs to work on the tourism sector to enable tourists to come so that they can attract more foreign currency.
Source: Foroyaa |
A clear conscience fears no accusation - proverb from Sierra Leone |
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Momodou
Denmark
11512 Posts |
Posted - 25 Oct 2012 : 09:57:19
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ARE INSTITUTIONS HALTING TRADE IN FOREIGN CURRENCIES TO AVOID LOSSES?
Foroyaa Editorial: Published on Wednesday, 24 October 2012
Foroyaa has been monitoring the currency markets since the state house declared 'operation no compromise' against business persons referred to as currency hoarders and speculators.
Prior to the Press Release from the state house banks, bureau de Change and private non licensed dealers were purchasing the dollar at 34 dalasis per dollar and selling above 35 dalasi per dollar.
Hence if a bank were to purchase 1000 dollars at 34 dalasi to the dollar from one individual it would pay 34000 dalasi to the person. The bank would make a profit of 1000 dalasi if it sells its dollars at 35 dalasi per dollar.
After the declaration from state house, currency markets are supposed to sell at 28 dalasi per dollar. This means that those who bought the dollar at 34 dalasi per dollar would now have to sell at 28 dalasi per dollar. This means that they would lose six dalasi per dollar or 6000 dalasi per one thousand dollars.
Taking into consideration that over 1.6 billion dollars is traded in the currency market in the Gambia annually, on average 130 Million dollars is traded per month. This means that those in the currency market could lose up to 780 Million dalasi within a month if they had purchased at 34 dalasi per dollar and are now to sell at 28 dalasis per dollar.
Fixed exchange rates are not declared over night after relying on the flexible exchange rate system for decades. A scientific study to measure impact ought to be done with immediacy to prevent any negative repercussions on foreign currency flow and investments.
Source: Foroyaa |
A clear conscience fears no accusation - proverb from Sierra Leone |
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Momodou
Denmark
11512 Posts |
Posted - 25 Oct 2012 : 10:01:35
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Strong Dalasi, Weak Purchasing Power:Critical analysis of Gambia’s economic and financial stakes
By Sarjo Bayang - Enterprise Architect, Project Management Consulting, UK
Daily News, Published on Wednesday, October 24, 2012
Gambian consumers are riddled by recent economic uncertainties as major international currencies fail to stand the weak Gambian Dalasi in exchange value. Before the truth comes to surface, political big mouths of the regime made a trumpet loud noise by calling it an appreciation of the Gambia’s Dalasi, a currency backed by peanuts.
Building confidence on false hopes
In the short run, Gambians built the false confidence that our Dalasi has gained strength in relation to these hard currencies.
Over the medium interval of events, economic reality prevails; sweeping away all hopes of a better life hanging on Gambia’s peanut backed Dalasi as a token of salvation. At a time exchange rate of international hard currencies runs like they fall at knee level against Gambian Dalasi, local price levels rapidly head for the skies. Such a situation defeats full hope of those who settled for the belief that all was going well for a seemingly strong Dalasi.
Weak purchasing power
Huge volume evidence before everyone’s open eyes is ways a seemingly strong Dalasi is biting deeper inside the pockets of rich and poor alike. Now running into months since international currencies showed lower exchange value against the Gambian Dalasi, purchasing power of the peanut backed currency is going weaker by the day.
An examination of varying factors can help us understand why the Gambian Dalasi is portrayed by political pundits as gaining strength against hard international currencies and yet prices of goods and services keep rising.
Excess Volume of Financial Services
A proliferation of financial service providers in recent years means that cash flow volume is higher than required. There is such a high volume of banking services at a time when debt servicing is not readily feasible. Indigenous entrepreneurs are reluctant to borrow for business. In principle, anyone who lifts funds from a bank implies that the borrower is more capable of maximizing the use of that money than the bank or lending institution.
In practice, when you borrow for business, you expect a return on investment. All being well, your cost of borrowing is absorbed by profit from sales. Without the enabling business environment, the borrower assumes more risk of capital than appropriate.
Fear in assuming risk of borrowed money without prospects for gainful remuneration is enough reason to stop any prudent entrepreneur lifting funds from financial institutions. This is more risky with venturing in an economic environment that is not promising adequate gains.
Acting on such instincts, it is normal that Gambia’s business community minimizes on buying or borrowing foreign currency at interest rates above profit potential. In the face of such economic uncertainties, a slowdown of financial products impacts on both buyers and sellers.
Inflation and Monopoly
This state of affairs transcends the scope of hope. Added dimension to cost of borrowing and financial stagnation is the biting effects of inflation. At a time financial institutions open their doors for ghost borrowers, in the real business arena, goods are being hoarded in anticipation of higher prices next time round. Prolonged hoarding fuels up inflation.
Since business capital could not stay tied to slow moving stock, goods are still available but at higher prices in successive days. There will still be some high risk-bearing entrepreneurs ready to venture into placing new orders. They continue to enjoy a near monopoly due to artificial shortage of their willful creation. There is little that Gambia’s state machinery is able to influence business in the face of hostile and uncompromising economic crisis. Business seems as usual with limited financial returns for the very few that command large volume of monopoly capital.
With Yaya Jammeh having totally abandoned the important duties of presidency and playing biggest monopoly business man standing undefeated in the ring, stakes are even higher. Most infeasible and so unsuitable is the combined reality that Jammeh is no good business person and only exploits position of presidency to grab everything. Other fact of the matter is that genuine entrepreneurs are sent packing on a stage that leaves Jammeh playing the pipes and dancing to his own tunes.
Underground Financial Dealings
Official records may present import and export figures neatly on paper. Financial bigger picture of real economic operations entails the income and expenditure of other actors. Underground financial market operates as an invisible business empire. With the influx of banks, it is hard to rule out prospects of money laundering, currency counterfeit and other illicit financial malpractices.
Even developed economies supervised by highly competent experts are prone to the manipulation of crafty financial under-hands. You expect the impact to be more severe on weaker economies such as that of Gambia. Last year alone (2006), Britons lost millions of their hard earned Pound Sterling through illicit financial operators using the most secured bank facilities. Financial dealings in Gambia are no more secured than Britain or America; so what do you expect?
Corruption at higher levels can be a recipe for infiltration of Gambia’s insecure financial system by illicit money dealers. What we end up having is nothing more than an excess of hard currency sitting idle for long enough. These are possible factors bearing an impact on Gambia’s enigmatic currency power.
Remittance from Abroad
To believe that a currency backed by peanuts is able to beat hard international currencies in the face of this complex financial maze is naivety. Those who insist on taking shelter of the Dalasi in this imposing currency crisis better reconsider a shift of reasoning position. The most puzzling nightmare that Gambians abroad continue to bear is daily decline in value of remittance to families back home.
It was a firm held belief by some Gambians living abroad that with high value of international hard currencies a small amount remitted back home makes huge difference to the recipients. Now that situation swings on the negative balance of value. What has been barking ordinary citizens at home for a long time is now biting deep inside the pockets of toiling Gambians abroad without ready remedy.
Digging deeper for mystery Dollar stocks in Gambia
Under President Jammeh it has been proven clear that Gambia will never do any better. Evidently, his passion for personal wealth is overwhelming. It is too worrying that in all the years, he continues paying more attention in building his private wealth possession that doing the job of national president what is better required. In the process, Gambia’s economy and financial stakes remain severely compromised.
Recent announcement by the government placing unsolicited ban on movement of Dollars is complete twist. There is only one person with suitcases of raw Dollar notes . That person is President Jammeh. Something is seriously wrong with Jammeh dishing out bundles of newly fried Dollar notes as though Gambia is America.
Without explaining his source of loose Dollars, Jammeh is not telling Gambians anything clear. It is therefore most deceitful for Gambia government to place a ban on movement of American Dollars from shores of Gambia without conducting deeper and wider search of all the bunkers where these Dollars are stock-piled as communities of exchange.
Strong Dalasi and weak purchasing power suggests a situation where sums do not add up. If Gambia Dalasi is that strong, why is president Yaya Jammeh keeping bulky reserves of American Dollars? Remember also that British Pound Sterling commands higher exchange value than Amerian Dollar. Why is Jammeh not trading in Pounds, given the proximity of Gambia to UK ? There are more questions needing right answers.
Source: Daily News |
A clear conscience fears no accusation - proverb from Sierra Leone |
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Karamba
United Kingdom
3820 Posts |
Posted - 25 Oct 2012 : 22:08:57
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My basic understanding is that the president is out to control all that is happening in Gambia. Is this the way to control financial affairs of a nation ?
Is president Jammeh also Finance Minister of Gambia ? |
Karamba |
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kobo
United Kingdom
7765 Posts |
Posted - 25 Oct 2012 : 22:51:04
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Karamba These Freedom news will help you with some answers; particularly our US Resident First Lady monthly shuttles to US with DOLLARS 
FREEDOM BREAKING NEWS;
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Edited by - kobo on 25 Oct 2012 22:53:12 |
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Karamba
United Kingdom
3820 Posts |
Posted - 26 Oct 2012 : 02:52:26
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Kobo, will you ever think captain Jammeh having interest on Dollars and Pounds from abroad ? This looks like him telling those Gambians abroad that he controls their pocket too.
There are two issues at hand. One is over use of political power. Another is exploitation of the economic system or finances. May be there are other unknown matters. |
Karamba |
Edited by - Karamba on 26 Oct 2012 02:53:46 |
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kobo
United Kingdom
7765 Posts |
Posted - 26 Oct 2012 : 04:00:45
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Karamba. I think Freedom and Foroyaa have made proper critical sound analysis in addition to excessive abuse of power, depletion of state resources and exercise of Jammehconomics (or irrational, arrogant direct interference, manipulation and damaging economy) or sinking nation; which is too dangerous for future of motherland and its citizens
For financial business transactions and any FOREX deals; especially those sending money abroad you are better off and earn more dalasi value in your pocket/account by dealing with banks directly or channelling funds (transactions) through banks rather than FOREX bureau, Money Transfer Agency and black market dealers; under present circumstances
CENTRAL BANK FOREX SOURCE WITH;
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Edited by - kobo on 26 Oct 2012 04:52:29 |
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terangba
Egypt
225 Posts |
Posted - 26 Oct 2012 : 04:18:19
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| What should our collective response be? I thought about sending my dad's allowance through Senegal but the Cefa is affected. |
God gave men dominion over the beasts and not over his fellow men unless they submit of their own free will. - Napoleon |
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kobo
United Kingdom
7765 Posts |
Posted - 26 Oct 2012 : 06:09:44
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Terangba. You don't need to think about sending through Senegal and I would not recommend that long winded process using Senegal as advised from Freedom news
Take your time to review current ruling rates (shown above)to know expected rate within average of buying/selling rates? Then check your local bank whether they have a correspondent bank to arrange transfer money to any bank at Gambia, as you want to send money to families at home? There may be more than one bank so to your advantage, check for best competitive offer or one you have a good deal which you are happy with? Make a decision to sent it through bank to bank and from collection at right bank branch
NOTE: MONEY TRANSFER AGENTS OR DEAL AT BLACK MARKET IS NOT FAVOURABLE AT PRESENT AND I WON'T RECOMMEND EVEN WESTERN UNION? BANK TO BANK DEAL IS BETTER
FOREX IS PART OF TECHNICAL TERM CALLED SPECULATIVE MARKET AND ITS DYNAMICS ON INTERNATIONAL TRADE ESTABLISH EXCHANGE RATES. ALSO CENTRAL BANK PLAY CRUCIAL ROLE IN TERMS OF MONETARY POLICIES AND DEALING WITH ECONOMY; THEREFORE THE PRESIDENT CANNOT REGULATE IT BUT CAN HARM THE ECONOMY WITH THIS DIRECTIVE.
COMING TO DEAL WITH THE MONSTER IS A CHALLENGE FOR ALL PATRIOTS TO RISE UP AND FACE HIM; STOP THE ABUSE OF POWER, RAMPANT CORRUPTION AND ATROCITIES, AS "ENOUGH IS ENOUGH"! WITH LEADERSHIP, OUR RESOLVE, RESPONSIBILITY, COURAGE, ESPRIT DE CORPS, SOLIDARITY, MASS MOBILISATION, COLLECTIVE ACTION AND FIRMNESS (AMONGST OTHERS) WE CAN SUCCEED TO GET RID OF THE MONSTER
Others may have better ideas and can chip in |
Edited by - kobo on 26 Oct 2012 10:34:43 |
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terangba
Egypt
225 Posts |
Posted - 26 Oct 2012 : 21:33:47
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| Thanks Kobo I will look into your recommendation. |
God gave men dominion over the beasts and not over his fellow men unless they submit of their own free will. - Napoleon |
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kobo
United Kingdom
7765 Posts |
Posted - 27 Oct 2012 : 04:19:26
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MORE USEFUL ACCESS GAMBIA INFORMATION INFORMATION SITE FOR BANKING & FINANCE, MONEY TRANSFER/BUREAU DE CHANGE, BUSINESS, TRAVEL & TOURISM;
IT IS IN THE ON-LINE NEWS THAT WESTERN UNION HAS BEEN FORCED BY THIS PRESIDENTIAL DIRECTIVE TO SUSPEND OPERATIONS TILL FURTHER NOTICE! TO BE FAIR WITH WESTERN UNION I SHOULD NOT HAVE RULED OUT WESTERN UNION ON FAVOURABLE COMPETITIVE FOREX DEALS; SO WESTERN UNION IS RECOMMENDED WITH BAYBA FOR INSTANT MONEY TRANSFER BECAUSE THEY ARE EXPECTED TO PLAY AND COMPLY WITH BANKING & FINANCE BUSINESS POLICIES AND CENTRAL BANK MONETARY POLICIES & REGULATIONS
AND FOR MORE INFORMATION ON ALLEGATIONS OF WESTERN UNION CRUDE OPERATIONS IN GAMBIA WITH HELLO GAMBIA NEWS |
Edited by - kobo on 27 Oct 2012 06:00:20 |
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Momodou
Denmark
11512 Posts |
Posted - 06 Nov 2012 : 12:32:25
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THE DOMESTIC DEBT INCREASED BY 1 BILLION DALASIS IN ONE YEAR THERE SHOULD BE NO SCAPE GOAT FOR THE DEPRECIATION OF THE DALASI
Foroyaa Editorial: Published on Monday, 05 November 2012
The reason for the depreciation of the dalasi against other foreign currencies is now becoming clearer than ever.
According to the Central Bank "As at end-September 2012, the domestic debt increased to D10.2 billion (30 percent of GDP) compared to D9.2 billion (28 percent of GDP) "Outstanding Treasury bills, account for 74.6 percent of the debt and rose to D7.6 billion in September 2012 from D6.6 billion in September 2011.
The Central Bank has made it clear that "preliminary balance of payment estimates for the first half of 2012 indicate an overall deficit of US$38.03 million or about 1. 22 billion dalasi."
The capital and financial account deficit widened to US$54.91 million or about 1.76 billion dalasi reflecting the decline in foreign direct investment and equity capital flows. This simply means that less money is being invested in the country.
The goods account deficit widened to US$89.38 million from a deficit of US$62.64 million due to the 34.8 percent increase in imports which more than offset the 21.2 percent growth in exports. This means that we are demanding more foreign exchange to import goods while less foreign money is coming into the country by way of investment or earnings from exports.
One could therefore scientifically understand why the Central Bank stated that: "The Dalasi depreciated against the US Dollar and Pound Sterling by 11.6 percent and 8.4 percent respectively in September 2012 compared to September 2011. In nominal effective exchange rate terms, the Dalasi depreciated by 4.7 percent.
The Office of the President should therefore make no pronouncement on exchange rates unless they are properly advised by the Central Bank.
Source: Foroyaa |
A clear conscience fears no accusation - proverb from Sierra Leone |
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Momodou
Denmark
11512 Posts |
Posted - 06 Nov 2012 : 12:39:50
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CENTRAL BANK POLICY RATE UNCHANGED DALASI DEPRECIATES AGAINST THE US DOLLAR AND POUND STERLING
By Mamadou Dem & Suwaibou Touray
Foroyaa: Published on Monday, 05 November 2012
 The Central Bank Monetary Policy Committee of the Gambia headed by the Governor of the Central Bank, Mr.Amadou Colley, on Friday November 2, 2012 briefed the Press on their last meeting.
In his presentation of the Monetary Policy Committee (MPC) statement, he said their last meeting took place in July 2012. He went on to comment on the global economic outlook which he said has weakened further since July 2012.
He cited the IMF's October 2012 World Economic Outlook, which forecast growth in global output at 3.3 percent in 2012, down from the earlier projection of 3.5 percent attributed to the on-going Euro area crisis, the US fiscal cliff, possible food price increases arising from the drought in the US, and weaker stimuli from emerging market economies, especially China. It said growth in advanced economies is projected at 1.3 percent in 2012 and 1.5 percent in 2013. "After several years of very strong growth, economic activity in the major emerging markets decelerated in the face of weakening external demand", Said Governor Amadou Colley of the Gambia Central Bank.
According to the MPC citing the Gambia Bureau of Statistics, the Gambian economy is projected to expand by 4 percent in 2012 following a contraction of 4.0 percent in 2011 caused by the severe drought which reduced agricultural output in several countries in the Sahel region. It said real GDP is expected to expand by about 10 percent in 2013 premised on the expected recovery of crop production to the 2009 and 2010 levels and robust growth of the tourism sector. "The pace of monetary expansion remains modest. In the year to end-September 2012, money supply grew by 7.0 percent, lower than the 11.5 percent a year ago. Both components of money supply increased, with narrow money growing at a slower pace of 4.7 percent and quasi money by 8.9 percent. Reserve money contracted by 3.1 percent, significantly lower than the growth rate of 13.0 percent a year earlier. Reserve money is programmed to increase by 5.8 percent by end-December 2012", Said Governor Colley of the Gambia Central Bank.
The CBG Monetary Policy Committee indicated that in the first nine months of 2012 Domestic revenue, comprising tax and non-tax revenue, rose to D3.65 billion, or 16.6 percent; that tax and non-tax revenue increased to D3.2 billion and D411.9 million, or 18.8 percent and 1.7 percent respectively. Total expenditure and net lending also rose, but at a slower pace of 3.9 percent to D4.97 billion (17.0 percent of GDP) and both current and capital spending increased by 1.2 percent and 7.0 percent respectively.
"As at end-September 2012, the domestic debt increased to D10.2 billion (30 percent of GDP) compared to D9.2 billion (28 percent of GDP) in September 2011 Outstanding Treasury bills, accounting for 74.6 percent of the debt, rose to D7.6 billion in September 2012 from D6.6 billion in September 2011", Revealed Governor Colley of the Gambia Central Bank.
The MPC indicates that readings on the distribution of Treasury bills by maturity indicate that the 364-day bills, 182-day bills and 91-day bills accounted for 63.1 percent, 23.0 percent and 13.8 percent of the outstanding stock as at September 2012 compared to 66.6 percent, 19.7 percent and 13.7 percent in September 2011 respectively. The yield on all the maturities increased, albeit slightly. The yield on the 364-day, 182-day and 91-day Treasury bills rose to 10.68 percent, 9.59 percent and 8.5 percent in September 2012 from 10.01 percent, 8.71 percent and 7.98 percent respectively in September 2011", said Governor Amadou Colley of the Gambia Central Bank.
He said for the preliminary balance of payment estimates for the first half of 2012 indicate an overall deficit of US$38.03 million compared to a surplus of US$46.67 million in the corresponding period of 2011; that the current account recorded a surplus of US$17.34 million, lower than the surplus of US$61.65 million in the first half of 2011; that the capital and financial account deficit widened to US$54.91 million from US$14.98 million in the first half of 2011 reflecting the decline in foreign direct investment and equity capital flows. The MPC while briefing the Press informs that the goods account deficit widened to US$89.38 million from a deficit of US$62.64 million in the corresponding period in 2011 due to the 34.8 percent increase in imports which more than offset the 21.2 percent growth in exports.
Referring to the volume of transactions in the foreign exchange market in the year to end-September 2012, which he said decreased to US$1.5 billion or 1.1 percent from a year ago. The Dalasi depreciated against the US Dollar and Pound Sterling by 11.6 percent and 8.4 percent respectively in September 2012 compared to September 2011, but appreciated against the Euro by 0.6 percent. In nominal effective exchange rate terms, the Dalasi depreciated by 4.7 percent, said Governor Colley
"As at end-September 2012, gross official reserves totaled US$171.3 million, equivalent to 5.0 months of imports of goods and services. The fundamentals of the banking industry remain strong. The average risk-weighted capital adequacy ratio was 26.4 percent in September 2012, higher than the minimum requirement of 10.0 percent", Read Governor Colley while reading the MPC report to the Press this morning.
On assets, he said total assets rose to D19.31 billion in September 2012, or 6.6 percent from September 2011; that gross loans and advances, accounting for 30.0 percent of total assets, rose to D5.8 billion, or 12.1 percent from a year ago. He said Credit to distributive trade, tourism and building and construction increased by 9.9 percent, 21.9 percent and 13.4 percent respectively; that in contrast, loans and advances to agriculture, fishing and transportation declined by 15.0 percent, 39.1 percent and 18.8 percent respectively. He also mentioned the ratio of non-performing loans to gross loans declined to 12.7 percent in September 2012 compared to 13.4 percent in September 2011; that the industry remains highly liquid. The liquidity ratio he said was 68.4 percent in September 2012, but lower than the 73.2 percent in September 2011. "The industry recorded a profit of D67.6 million in the third quarter of 2012 against the loss of D8.15 million in the corresponding quarter of 2011", Said Gambia's Central Bank Governor while reading the banks MPC statement to the Press at a Press Briefing this morning.
On End-period inflation, Colley said as measured by the National Consumer Price Index (NCPI), was 4.2 percent at end-September 2012 compared to 4.1 percent a year earlier. He said the average inflation (12-month moving average), however, decreased from 5.2 percent in September 2011 to 4.2 percent in September 2012.
"Food inflation also decelerated from 5.5 percent in September 2011 to 4.9 percent in September 2012 and consumer non-food inflation, on the other hand, rose from 2.2 percent in September 2011 to 3.4 percent in September 2012. Core inflation, which excludes prices of energy, utilities and volatile food items, he said, rose minimally to 4.3 percent in September 2012 from 4.2 percent in September 2011", Said Colley.
According to the Governor of the Gambia Central Bank, recent inflation outcomes were in line with expectations. He said that in the remainder of the year, inflation is forecast not to exceed the target of 5.0 percent. "There are, however, upside risks to the forecast emanating mainly from the recent depreciation of the Dalasi and higher commodity prices", Opined Governor Colley.
He informed that at the previous meeting, the MPC assessed that conditions justified the loosening of monetary policy; that although domestic economic growth has slowed and inflation contained, the MPC is of the view that further reduction of the policy rate is not appropriate. He said the MPC has, therefore, decided to leave the policy rate unchanged at 12.0 percent. Further actions going forward would depend on the impact of global and domestic developments on the inflation outlook.
The MPC, comprising senior officials of the Central Bank and Department of State for Finance and Economic Affairs (DOSFEA), meet every two months and sets the rediscount rate which signals its policy stance.
Source: Foroyaa |
A clear conscience fears no accusation - proverb from Sierra Leone |
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Momodou
Denmark
11512 Posts |
Posted - 16 Nov 2012 : 13:17:08
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So they now accept that the dalasi is market determined?
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Govt withdraws move on foreign currency hoarding
The Point: published on Friday, November 16, 2012
 The Office of the President has withdrawn moves taken last month on speculative activities and dollar hoarding it said was meant to manipulate the dalasi exchange rate.
A statement issued by the presidency yesterday announced that the exchange rate for the dalasi is market determined, and it would uphold that regime.
The presidency said it has observed that since the last press release on Operation No Compromise on foreign currency hoarding, the general public and licensed foreign exchange dealers have been complying satisfactorily.
“As a result, the Office of the President has decided to withdraw the instructions given earlier on speculative activities and hoarding meant to manipulate the dalasi exchange rate,” it stated.
“The Office of the President announces for the information of the general public and licensed foreign exchange dealers that the exchange rate of the dalasi is market determined and would uphold that regime, but would at the same time not tolerate any attempt to thwart the swift or smooth functioning of the foreign exchange market,” the statement added.
The authorized shipment of foreign currency through the banking system, the presidency noted, shall continue under the guidelines established by the Central Bank of The Gambia.
However, the presidency warned that anyone found not playing by the rules of transparent market practices will be dealt with according to law.
It said authorities will, therefore, continue to closely monitor the foreign exchange market to ensure orderly operation.
Source: The Point |
A clear conscience fears no accusation - proverb from Sierra Leone |
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gainde
Sweden
117 Posts |
Posted - 16 Nov 2012 : 16:00:18
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Three weeks after issuing the directive. I agree with you, Tom that this is beyond comprehension
quote:
Originally posted by Momodou
So they now accept that the dalasi is market determined?
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Govt withdraws move on foreign currency hoarding
The Point: published on Friday, November 16, 2012
The Office of the President has withdrawn moves taken last month on speculative activities and dollar hoarding it said was meant to manipulate the dalasi exchange rate.
A statement issued by the presidency yesterday announced that the exchange rate for the dalasi is market determined, and it would uphold that regime.
The presidency said it has observed that since the last press release on Operation No Compromise on foreign currency hoarding, the general public and licensed foreign exchange dealers have been complying satisfactorily.
“As a result, the Office of the President has decided to withdraw the instructions given earlier on speculative activities and hoarding meant to manipulate the dalasi exchange rate,” it stated.
“The Office of the President announces for the information of the general public and licensed foreign exchange dealers that the exchange rate of the dalasi is market determined and would uphold that regime, but would at the same time not tolerate any attempt to thwart the swift or smooth functioning of the foreign exchange market,” the statement added.
The authorized shipment of foreign currency through the banking system, the presidency noted, shall continue under the guidelines established by the Central Bank of The Gambia.
However, the presidency warned that anyone found not playing by the rules of transparent market practices will be dealt with according to law.
It said authorities will, therefore, continue to closely monitor the foreign exchange market to ensure orderly operation.
Source: The Point
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