By Sainabou Sambou
The Dalasi, Gambia’s national currency, continues to face depreciation pressures, but Central Bank Governor Buah Saidy remains optimistic, emphasizing self-reliance, increased domestic production, and financial inclusion as critical strategies to strengthen the economy.
Speaking at the Monetary Policy Committee press briefing on Tuesday, September 2, 2025, Saidy outlined bold initiatives to reduce reliance on imports, boost agricultural output, and expand digital financial services. Meanwhile, the Central Bank maintained its key interest rate at 17%.
Governor Saidy highlighted the wide current account deficit in the balance of payments, driven primarily by a trade imbalance. “Most inflows come from remittances, tourism, and other sources, while agricultural exports remain minimal,” he noted. To address this, the government prioritizes policies to enhance domestic productivity, particularly in agriculture.
Saidy pointed to rice production as a key area of focus, noting that The Gambia imports 275,000 metric tons annually while producing only 19,000 metric tons domestically. “Efforts are underway to achieve self-sufficiency in rice within three years,” he said, emphasizing that this would conserve foreign currency reserves and bolster the Dalasi.
Beyond rice, Saidy outlined initiatives to boost horticultural vegetable production and improve groundwater utilization, reducing dependence on imports from neighboring countries like Senegal. “These are things we can grow here,” he said. “We grow our economy, add value to those products, export, and earn more foreign currency. This will reduce reliance on Treasury bills to finance the government deficit.” Saidy believes The Gambia can stabilize its currency and reduce economic vulnerabilities by increasing exports and domestic production.
Addressing concerns about using foreign currencies in local transactions, Saidy was unequivocal: “It is illegal to ask for payment in foreign currency, whether US dollars or CFA. The Dalasi is the only legal tender, and we will take action against violators.” He stressed that such practices undermine the national currency and economic sovereignty.
Saidy celebrated significant progress on financial inclusion since taking office in 2020, when the financial inclusion rate stood at a mere 19%. “By design, we aimed to increase it to 75% by the end of 2025,” he said.
Innovations in fintech and mobile money have been pivotal, with services like mobile wallets enabling rapid transfers. “Now, you can send money to a phone, and it reaches the recipient in 10 minutes,” he noted. The Central Bank is collaborating with the Alliance for Financial Inclusion to expand digital payments while ensuring robust regulation to protect customer funds.
Saidy explained that inflation, a pressing concern, is primarily driven by food and beverage prices rather than administered prices like fuel or tariffs. “Food inflation is seasonal, as imports are high and domestic harvests are not yet available,” he said, referring to the annual “hunger period” when food price pressures peak. However, he expressed confidence that inflation would meet the Central Bank’s medium-term target of 5% by year-end, supported by improved agricultural output and supply chain enhancements.
Addressing the Dalasi’s depreciation, Saidy attributed it to low export earnings and limited foreign currency inflows, dismissing claims that corruption or illegal payments are significant factors. “The Dalasi has depreciated, but our currency is more stable, and the depreciation is gradual compared to other countries,” he said. He noted that reliance on imported goods, particularly vegetables from Senegal, exacerbates the issue, but emphasized that foreign currency transactions do not directly drive depreciation.
Saidy also firmly rejected allegations linking corruption to inflation or the budget deficit. “Corruption has no bearing on inflation or the budget deficit,” he asserted. Reflecting on his tenure since 2020, he underscored the Central Bank’s mission to transform The Gambia from a low-income to a high-middle-income nation. “Our focus is on a paradigm shift that drives sustainable growth,” he said.
