Buah Saidy, Governor of Central Bank of the Gambia, has has disclosed that private remittances continued to be the main source of foreign exchange inflows in the domestic foreign exchange market, adding that the volume of remittances injected into the country in 2021 stands at US$657.22 million.
He made this disclosure at a press conference organised by the Monetary Policy Committee (MPC) of the Central Bank of the Gambia on Thursday 25th November, 2021, where he said the IMF and the Gambian authorities forecast real GDP growth of 4.9 percent this year.
“Transaction volumes in the foreign exchange market increased to US$2.49 billion in the twelve months to end-September 2021, from US$2.24 billion a year ago. Both purchases and sales of foreign currency (representing supply and demand) rose by 12.0 percent and 10.7 percent to US$1.24 billion and US1.25 billion, respectively,” Governor Saidy disclosed.
He added: “Private remittances continued to be the main source of foreign exchange inflows in the domestic foreign exchange market during the review period. Total volumes of remittances inflows from January to October 2021 outperformed the whole 2020 remittances by 11.4 percent to stand at US$657. 22 billion.”
According to him, the Gambian economy is expected to recover in 2021, due to easing restrictions in the Covid-19, protocols in many countries, adding that the anticipated economic growth for the country as forecasted by the International Monetary Fund (IMF) and Gambian authorities.
“In 2021, the economy has been estimated to recover on account of eased restrictions on economic activities, anticipated recovery in tourism and trade and the continous support of fiscal and monetary policies. Consequently the IMF and the Gambian authorities forecast real GDP growth of 4.9 percent in 2021,” CBG Governor, Buah Saidy submitted to the press.
Domestic debt surges to D37.32B
Governor Saidy, doubling as the Chairman of the MPC highlighted that the domestic debt stock of the country has increased by two billion and sevety seven million dalasis (D2.77 billion), adding that this increment has spurred the country’s current domestic debt to D37. 32billion).
“Total outstanding domestic debt stock rose by D2.77 billion to D37.32 billion in the year to end-October 2021, compared to D34.55 billion in the corresponding period in 2020. The modest growth in the debt stock was driven partly by widened fiscal deficit financed through bond insurances as well as the government’s ongoing debt management strategy of reprofiling the debt stock to create fiscal space,” Chairman MPC revealed.
He added: “Consequently, significant progress has been realised in terms of reprofiling the debt stock as evident in the following: at end-October 2022, the short-term, medium-term, and long-term debt securities accounted for 53.6 percent, 23.3 percent, and 24.1 percent of the outstanding debt relative to 59.3 percent, 13 6 percent, and 27.0 percent, respectively in the same period.”
The Central Bank chief continued to disclose that rates traded in the foreign exchange market remain stable due largely to the strong remittances inflows recorded in the country, adducing that the dalasi is depreciating against major international currencies except for the dollar.
“On annual basis, the Dalasi marginally weakened against the Euro, the Pound Sterling and CFA Franc by 2.8 percent, 6.8 percent, and 6.6 percent respectively, but appreciated against the US Dollar by 1.0 percent as at end-September 2021,” CBG Governor disclosed.
The Committee has taken key decisions that include: Maintaining the Policy rate (MPR) at 10 percent; Maintaining the required reserve (RR) at 13 percent; and Maintaining the interest rate on the standing lending facility at 11.0 percent (MPR plus 1 percentage point).
The Committee assured the Gambian people that it will continue to closely monitor the situation and to take further necessary action as and when the situation requires.
