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Momodou
Denmark
11516 Posts |
 Posted - 31 Jul 2013 : 09:00:07
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PRESIDENT’S OFFICE WARNS FOREIGN EXCHANGE DEALERS FIXES DOLLAR AT MAXIMUM 37 DALASI
By Suwaibou Touray & Mustapha Jallow
Foroyaa: Published on Tuesday, 30 July 2013
The President’s Office, has in a press release issued recently, fixed the exchange rate of the US Dollar to a maximum of 37 Dalasi with effect from 26 July. Expressing concern on what it described as the unwarranted hike in the exchange rate of the Gambian Dalasi vis-a-vis international currencies, notably the US Dollar, the president’s office opined that the hike is often instigated by “unscrupulous and unpatriotic individuals” bent on sabotaging the economy.
“This state of affairs is unacceptable and as such the exchange rate of the US Dollar is fixed at a maximum of D37.00 to the Dollar with immediate effect,” stated the release. “Henceforth, any individual who wishes to take foreign currency out of the country must do so through the numerous banks in the country. However where it is absolutely necessary for an individual to carry cash out of the country, such must not exceed 10,000 US Dollars and must be declared at the point of exit otherwise it would be forfeited to the state if found concealed,” warned the president’s office in a release from state house in Banjul.
The president in an interview with the state owned GRTS Television July 26th argued that the depreciation of the Dalasi has nothing to do with the down turn of the Gambian economy and asserted that the state has knowledge of those involved in hoarding foreign currency and such persons would be pursued and prosecuted.
He also said an Operation named SWAD has been launched and will be reinforced to crack down on illegal parallel market dealers in foreign currency.
EDITOR’S NOTE
The International Monetary Fund (IMF) mission led by David Dunn at the end of their two week visit to The Gambia at a Press Conference with the Central Bank in Banjul on Monday 17 June 2013, made no secret of the uncertainty surrounding the exchange rate, citing crop production that is still well below normal, the balance of payments that has remained weakened and the Gambian dalasi that continued to face depreciation pressures.
Dunn also expressed the opinion that the Central Bank of The Gambia acted to tighten monetary policy, which he praised as having helped to stem the rate of depreciation. In the mission’s view at the time, reducing Government’s net domestic borrowing further during this period would be critical to ensuring confidence.
The statehouse should address the statements issued by the IMF after previous interventions which stated among other things that “the directive by the Office of the President on the exchange rate and shipments of the US dollar led to some disruptions in the foreign exchange market and created uncertainty about the Gambia’s exchange rate policy” and further welcomed what it termed as “ the recent lifting of the restrictions imposed by the directive and the renewed commitment to a flexible market determined exchange rate policy” The Government has declared over and over again that it is committed to the flexible market determined exchange rate policy only to intervene again to fix the rates.
What is responsible for this indecisiveness of which policy to stick to?
Foroyaa will find out.
Source: Foroyaa |
A clear conscience fears no accusation - proverb from Sierra Leone |
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Momodou
Denmark
11516 Posts |
Posted - 31 Jul 2013 : 10:07:21
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A fitting response to the Daily Editorial on the recent fixing of the exchange rate by the Presidents office.
The Following is culled from Gambia-L.
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Can someone tell the emperor that, his government is the problem
By Dr. Malanding Jaiteh
Going by the recent flurries of stern warnings, presidential edicts, claims, counter claims about foreign exchange and "unscrupulous" and
"unpatriotic currency dealers", and allegations of outright economic sabotage, there is all indications that something is not alright in His Excellency's Gambia.
What is mind numbing is the tone and direction this debate is now taking. The claim that "unscrupulous money changer" are hoarding the US Dollar is at best deceptive. Perhaps it is the classic case of tell a lie long enough and it will become the truth.
The US dollar, just like the candle and box of matches sold in Kerr Biram Ardo or the the sugar, flour and vegetable oil His Excellency dole out as lavish gifts are not made in the Gambia. The dollar, like any commodity is bought and sold for profit. The price at which one pays for them should therefore be dictated by they worth as far as the buyer is concern. In an environment where no one is coerced into buying or selling any produce the price paid is determined by market forces. If the price is right everyone who has the dollar will like to cash it.
Same applies to buyers who will refuse to buy when they see that they are being cheated. I am not an economist but this is what I understand by free market. Gambians have time immemorial been free marketeers, thus our bargaining instincts even in the streets of New York.
Demand and supply in a free market. Demand is generated when people find that they need get something and supply is when people realize they can benefit by making that thing available.
So who create the demand for Forex in the Gambia today?
All those who buy stuff from outside the Gambia. Can the President's Office tell us how much foreign currency His Excellency and entourage used in their last trip to the AU meeting? Can they tell us how much they plan to spend on coffee, tea, and chocolate for entertaining at the Statehouse or on vegetable oil, rice and flour his regularly gives to his staff this Ramadan alone? Or on the new Mercedes Benz gifts he received on his birthday? Remember none of these can be brought to the Gambia without Forex.
And who are the Forex Suppliers?
Apart from tourists who have no cheaper place to go other than the Gambia, much of the Forex in the Gambian is brought in by sons and daughters of the Gambia who have cross seas and beaten all odds to migrate to "greener pastures". It wasn't called greener by accident!Many of these work extremely long hours in sometimes unimaginable conditions to safe a little so that they can build themselves and families descent housing, food at the table and sometimes a little corner store. Some estimate this to be in the top 3 Forex sources in the country. And this no chicken change!
So why did the Office the President think that its ok decide that Gambians should pay D32 for a dollar one day after paying D40? Do they really believe that nobody will complain? Do they believe that these sons and daughters who braved the high seas, long hours and freezing cold and the desert sun would just roll over and allow someone walk away with as much as 20% of their hard-earn money? We may have scared Gambians but we do have a Gambian who falls into the category of "baa futoo balolu". Excuse my Mandinka. Wolof Njie say, "mak du fecha yal na deh".
I am sure whoever wrote this editorial knows exactly the problem behind the currency shortage. As President Bill Clinton once said, "its economics, stupid". Since the Presidential declaration of D33 / dollar, many individuals (in and outside the Gambia) have decided to hold on their hard earn currency and see what happens. Rather than pretending that its the exchangers hoarding, they should tell emperor its his efforts to fix prices that's sabotaging the economy.
By attempting to control every aspect of citizens' life (who to sell their groundnuts to and for how much; price of meat, sugar, bread, taxi ride) and now how much families sell the few dollars they receive from abroad. This is what's costing the economy. President Reagan would say, "government is not the solution to our problem; it is the problem".
Malanding Jaiteh
courtesy: Daily Observer - Stop the economic sabotage
Daily Observer Editorial: Tuesday, July 30, 2013
*Editorial*
We have dealt with this topic before; we are returning to it because of the developments in our currency market. The refusal of the unscrupulous money changers to cease their unhealthy attitude of hoarding the US Dollar and other foreign currencies is uncalled for. We have said it over and over again that the availability of enough foreign currency reserve in any country is a key determinant of the growth and progress of that country's economy. Economic statistics have proven that the stronger the foreign currency reserve of a country, the more stable the local currency becomes.
It is unbelievable that despite all the achievements registered by The Gambia in the area of economic development, some individuals and
corporate entities engage in the nefarious act of hoarding and causing artificial shortage of foreign exchange particularly the United States dollar. This tantamounts to economic sabotage and is unacceptable.
Those involved in this dubious activity must cease from it immediately.
Why should banks and forex bureaus and even mobile telephone operators refuse to release foreign exchange when they are the very ones that enjoy the most whenever the economy is experiencing a boom? This paper has reliably gathered that even though government has banned street foreign exchange trading (the handbag forex bureaus), some business people, instead of dealing in foreign exchange through the approved way, employ boys to buy and sell foreign currency on the streets. These illegal foreign currency dealers still loiter the popular West Filed junction where they secretly canvass for customers.
The Gambia has been registering positive economic growth; also our national currency, the dalasi has been relatively stable over the years.
All these are due to the policies put in place by the government. As citizens, we should understand that economic development is a programme, a group of policies, or activities that seek to improve the economic well-being and quality of life of a community and its citizens.
Hoarding of foreign currency leads to artificial scarcity, and this in turn causes the local currency to depreciate against the major currencies. This in turn, harms the economy. We must not allow it to happen.
We therefore call on the general public to cooperate with the government to help track down those responsible for the artificial shortage of foreign exchange. We also recommend that the authorities create a hot-line so that the people can easily and conveniently report any activity connected to economic sabotage for quick action to be taken.
Our business community must also realise that successful economic development affects everyone and doesn't just happen. It takes time, strategic planning and most importantly, strong public-private
partnerships. Government is doing all it can to develop this country. It is the responsibility of everyone to become an active and genuine actor in this process.
Author: *Daily Observer*
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A clear conscience fears no accusation - proverb from Sierra Leone |
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Momodou
Denmark
11516 Posts |
Posted - 31 Jul 2013 : 17:03:57
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FOREX BUREAUX OPENED
By Mustapgha Jallow
Foroyaa: Published on Wednesday, 31 July 2013
Foroyaa has been informed about the closure of Forex Bureaux in the Kanifing Municipality on Sunday, 27 July 2013 and the subsequent arrest and detention of staff which was reported. Yesterday, Tuesday, 30 July, this reporter visited several Forex Bureaux at different places to confirm whether they are still being closed, but found out that they are open. Speaking to a staff of Heewal Bureau de Change at Churchill Town, it was revealed that it was between 9am and 10am on Saturday when he received a phone call from their headoffice at 27 Kairaba Avenue asking him to close the bureau. He said on the following day, Sunday, he was again called by headoffice to open the bureau.
“For us, no one came to ask me to close the bureau,” he said. A proprietor of a bureau de change at Westfield said his staff was arrested on Saturday, 27 July 2013 between 1pm and 2pm. He explained that some people came to his bureau with a Dollar bill and asked his staff how much they are changing it for the Dalasi. He said when the staff told him that the Dollar is changed at D38, three men entered and without showing their identities, started searching the boxes containing a lot of cash in them.
They took the boxes and asked the staff to close the place and accompany them. He said when he went to where they took him at the NDEA in Kanifing, he was told by some people he met there that his staff was not in their custody. He said his staff was later taken by the NDEA to Remand where he has already visited him. Another bureau de change owner at the Serekunda market area said his outlet was not closed because he has registered.
Source: Foroyaa |
A clear conscience fears no accusation - proverb from Sierra Leone |
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Momodou
Denmark
11516 Posts |
Posted - 03 Aug 2013 : 17:34:58
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14 PEOPLE ARRESTED AND DETAINED CRACKDOWN ON FOREIGN EXCHANGE DEALERS
By Mustapha Jallow
Published on Friday, 02 August 2013
Foroyaa has received information on Wednesday,31 July, that people were being rounded up around the vicinity of the Serekunda market for alleged foreign exchange dealing. It is claimed that they were being arrested by people who do not bother to even show their identification.When this reporter visited the place yesterday, Thursday,1 August, he met with one Mr. Jallow, who owns a shop. He claimed that they are being harassed by people who posed themselves as security officials.
"These people would come to you and tell you that you are arrested and that you should follow them. You would then follow them to roam around the market while they arrest others only to be released later. Three men came to my shop and found me sitting and chatting with my friend.
They told us that we are engaged in changing foreign currency and asked us to follow them. He claimed that they took all the money they found in his possession and then asked him to go. He could not identify the persons involved. He said 14 people have been arrested and taken to the NDEA office in Kanifing.
Abdoulie Barry, the proprietor of a bureau de change and an adjoining shop in Serekunda, said he was sitting at his shop when 5 men came there and asked him why he opened and he responded that he has opened the shop to sell. He said the men further asked him why the bureau was open and he told them that it has not started operating as he was waiting for the license to start operations, but said the men did not believe him.
He said they insisted that he should follow them, and they started searching the whole place, but did not find anything. Barry explained that as the men were adamant for him to follow them, his young son started to cry which also made him to break into tears."Because of this, the men later released me, but took my younger brother who I helped to open a nearby shop to sell and repair watches", he said.
Abdoulie said his younger brother Ousman Barry was put in a vehicle and then taken to the National Drug Enforcement Agency (NDEA) in Kanifing.He said when he visited the place at Kanifing to talk to his younger brother, he was not allowed by the personnel he found there.
Another shop owner, Amadou Jang Bah, said he was arrested and released, but they took all the money that was in his possession. "I don't know why this people are doing such things to us. The parallel market has been long established in this country and many people depend on it for their survival. We are not responsible for the depreciation of the Dalasi", said Jang Bah.Foroyaa has been making efforts to talk to the president of the Forex Bureau association on the issue, but without success.
Source: Foroyaa |
A clear conscience fears no accusation - proverb from Sierra Leone |
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Momodou
Denmark
11516 Posts |
Posted - 15 Aug 2013 : 09:01:36
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GOVT. REVOKES FOREX BUREAUX LICENCES PEGS THE DOLLAR AT D35
By Ousman Sillah
Foroyaa: Published on Wednesday, 14 August 2013
In its attempt to curb the depreciation of the Dalasi against other international currencies, especially the US Dollar, a press release was issued by the Office of the President last evening announcing the introduction of certain measures aimed at stabilizing the Dalasi. The new measures that are being introduced are as follows: that the foreign exchange rate for the US dollar is now pegged at a maximum of D35; that licenses issued to the Foreign Exchange (Forex) bureaux by the Central Bank of the Gambia have been declared null and void; that all Forex bureaux have to apply for new licenses; no Forex Bureau is allowed to ship foreign currency out of the country; that shipments have to be done through banks and with the approval of the Central Bank of The Gambia; that individuals travelling out of the country are required to declare the foreign currency they are travelling with; that no one is allowed to travel out of the country with foreign currency exceeding US $9000 and that security agents are mandated to confiscate any amount above this threshold.
Source: Foroyaa |
A clear conscience fears no accusation - proverb from Sierra Leone |
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Momodou
Denmark
11516 Posts |
Posted - 24 Aug 2013 : 10:09:34
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MONETARY POLICY COMMITTEE OF THE CENTRAL BANK SHOULD SPEAK
Foroyaa Editorial: Published on Friday, 23 August 2013
WHY THE ARRESTS AND CLOSURE OF FOREIGN EXCHANGE BUREAUS?
The Office of the President rather than the Central Bank has been issuing statements on the exchange rate of the Dalasi. No Act is being quoted by the Office of the President in issuing its orders. Arrests are taking place but court appearances are not forthcoming. However, those in the foreign exchange trade are being subjected to intrusion into their privacy and even loss of personal liberty and security. What is amazing is that all these actions are taking place amidst the utter silence of the Central Bank authorities who are constitutionally mandated to handle such matters. It is as if the Office of the President has become the Central Bank.
The Central Bank Authorities should take charge of their responsibilities and inform the nation what is really going on and what it is doing to address the situation in line with the fundamentals of the economy. The role of the Central Bank is clear to all Gambians who are interested in knowing. Section 161 Subsection (4)(a)(b) and (c) of the Constitution states that:
The Central Bank shall-
(a) promote and maintain the stability of the currency of The Gambia;
(b) direct and regulate the financial, insurance, banking and currency system in the interest of the economic development of The Gambia;
(c) encourage and promote sustainable economic development and the efficient utilisation of the resources of The Gambia through the effective and efficient operation of a banking and credit system;
Hence it is the absolute authority of the Central Bank to regulate the financial, Banking and currency system of the Gambia, especially to promote and maintain the stability of the currency based on the constitution and an Act of the National Assembly. We therefore hope that it will take full charge of its responsibility and encourage and promote sustainable economic development. As it stands, the intervention is leading to disruption of economic activity which in the long run will lead to contraction of the productive base and economic retrogression.
Source: Foroyaa |
A clear conscience fears no accusation - proverb from Sierra Leone |
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Karamba
United Kingdom
3820 Posts |
Posted - 24 Aug 2013 : 20:04:47
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"As it stands, the intervention is leading to disruption of economic activity which in the long run will lead to contraction of the productive base and economic retrogression." |
Karamba |
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Momodou
Denmark
11516 Posts |
Posted - 09 Oct 2013 : 17:06:23
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Govt. repeals pegging of US dollar exchange rate
The Point: Wednesday, October 09, 2013
The Government of the Gambia has repealed the pegging of the dollar exchange rate against the Dalasi.
A statement issued by the presidency on Monday said the move followed a review of recent developments in the domestic foreign exchange market.
‘‘Trading in the foreign exchange market is to be determined by market forces as par The Gambia’s commitment to a flexible exchange rate regime,’’ the statement said.
However, the Office of The President urged players in the foreign exchange and other markets to play by the rules and advises traders to eschew the practice of hoarding and undue speculation.
‘‘While reiterating our commitment to free market policies, Government will ensure that players in the market conform to the rules and regulations that govern free markets,’’ the presidency added.
Source: The Point
Pegging of the dollar exchange rate repealed
Daily Observer: Published on Tuesday, October 08, 2013
Following a review of recent developments in the domestic foreign exchange market, the Office of the President informs the general public that the pegging of the dollar exchange rate against the Dalasi is hereby repealed.
In a press release issued by the Office of the President on Monday, the dispatch further added that trading in the foreign exchange market is to be determined by market forces as par The Gambia’s commitment to a flexible exchange rate regime.
The Office of The President urges players in the foreign exchange and other markets to play by the rules and advises traders to eschew the practice of hoarding and undue speculation. While reiterating our commitment to free market policies, Government will ensure that players in the market conform to the rules and regulations that govern free markets.
Author: Daily Observer |
A clear conscience fears no accusation - proverb from Sierra Leone |
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toubab1020
12240 Posts |
Posted - 09 Oct 2013 : 17:48:27
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In development terms this NEW move must make sense.
That will make MANY people happy..............one or 2 or maybe more perhaps NOT so happy!
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"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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Edited by - toubab1020 on 09 Oct 2013 17:51:30 |
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Momodou
Denmark
11516 Posts |
Posted - 25 Oct 2013 : 18:49:20
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Central Bank lifts suspension on Ria money transfer services
The Point: Published on Friday, October 25, 2013
The Central Bank of The Gambia has lifted the suspension on Ria money transfers services in the Gambian foreign exchange market effective Wednesday 23rd October, a statement issued by the bank announced Thursday.
The move comes four months after the central bank suspended money transfer services from three major money transfer operators namely, Ria, Money Express and Wari from operating in the country’s foreign exchange market.
In its statement, the central bank did not say anything about the fate of Money Express and Wari transfer services, but said ‘‘all the commercial banks, finance companies, as well as licensed foreign exchange bureaux may now conduct money transfer operations or establish a business relationship with RIA Financial Services.’’
Source: The Point |
A clear conscience fears no accusation - proverb from Sierra Leone |
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toubab1020
12240 Posts |
Posted - 25 Oct 2013 : 19:06:20
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All OK now then ? or is it, Are Money Express and Wari LICENCED today or not ? "clarification" is probably needed about their status in The Gambia.
"In its statement, the central bank did not say anything about the fate of Money Express and Wari transfer services, but said ‘‘all the commercial banks, finance companies, as well as licensed foreign exchange bureaux may now conduct money transfer operations or establish a business relationship with RIA Financial Services.’’ |
"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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Edited by - toubab1020 on 25 Oct 2013 19:11:15 |
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