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| T O P I C R E V I E W |
| Momodou |
Posted - 05 May 2015 : 15:06:03
Gambia gov’t orders immediate reduction of forex rates
By:Lamin Jahateh
The Point: Published on Tuesday, May 05, 2015
 In order to curb the rapid depreciation of the local currency, the Gambia government has passed an immediate directive that “the US dollar cannot be changed for more than 35 to 40 dalasi to a dollar.”
The present market exchange rate is D53 – D55 for 1 US dollar.
A statement from the Office of the President in Banjul on Monday said the Central Bank of The Gambia will set the rates of the Euro and Pound Sterling “immediately based on their real value”.
One Euro and one Pound Sterling before this press release were selling around D56 and D75 respectively.
Since 2014, the Gambian currency, the dalasi, has continued to steadily lose value against all the major international currencies.The depreciation was partly the result of reduced foreign exchange receipts, coupled with strong demand owing in part to the high level of liquidity in the economy.
In the statement from Banjul, the State House apparently blamed the depreciation of the dalasi on currency hoarding and speculation.
“Anybody found hoarding foreign currency in order to cause the depreciation will be charged and tried under the Economic Crimes Act and the immediate amount hoarded will be confiscated,” the State House said.
It warned that businessmen who are involved in foreign exchange speculation and hoarding should “desist immediately or face very drastic action”.
“Such notorious businessmen will have their businesses closed and if they are foreigners face immediate deportation,” the statement said.
Limitation on currency exportation
Henceforth, no foreign exchange amounting to more than ten thousand dollars, euros and pound sterling can be taken out of The Gambia without approval from the Office of the President, the State House announced.
“Failure to do so, the money will be forfeited to the state with immediate effect,” the presidency said.
No compromise
In order to effect the directives, the State House has immediately launched ‘Operation No Compromise’ once again.
Service heads are warned to carry the directives out to the letter “as any security personnel found wanting in the execution of ‘Operation No Compromise’ will regret being born.”
“‘Operation No Compromise’ is here to stay until currency speculators and hoarders and the illegal market are wiped out of the system,” the presidency said.
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| 7 L A T E S T R E P L I E S (Newest First) |
| Momodou |
Posted - 10 May 2015 : 22:36:21
IMPUNITY DOES NOT WORK IN ECONOMICS IS CRISIS IN THE FOREIGN EXCHANGE MARKET IMMINENT?
Foroyaa Editorial: Published on May 10, 2015
Foroyaa has indicated that the Government has told the whole world that it is committed to a flexible exchange rate system. This gave confidence to dealers in foreign exchange to know what to expect from the market.
The change of policy to a fixed exchange rate system caught many dealers by surprise. Hence the expected outcome is for those who bought dollars at a rate which was above 50 dalasis to the dollar to keep their dollar instead of selling it to buyers at a loss.
It is no surprise that some foreign exchange dealers have suspended operations until the government comes up with a policy which would enable them to operate without a loss.
The Central Bank needs to make an impact assessment of the executive directive of the state house on the dealers and report its findings so that steps would be taken quickly to avoid a crisis in the foreign exchange market which could have devastating effect on imports.
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| Momodou |
Posted - 08 May 2015 : 13:07:16
Foreign Exchange Restrictions Scale Down Money Transfer Transactions
Foroyaa: Published on May 7, 2015
Two days after the announcement of the executive order from the office of the president pegging the exchange rate of the US Dollar not to be more than 35 to 40 Dalasi to the Dollar and limiting the amount of foreign exchange to be sent out of the country to 10, 000 Dollars, Euros and Pound Sterling, this reporter went round to find out how this new restrictions have impacted on the banking and money transfer services.
Visiting some of the banks and money transfer services around the West Field area in the Kanifing Municipality, it was observed that few people were conducting transactions relating to foreign exchange and which was confirmed by some of the operators engaged in the business.
It was however noticed on the information boards in the halls of some
of these banks that the exchange rates of the foreign currencies
remain unchanged.
An official of one of the commercial banks, who prefers anonymity, said they are now working with the new rates. He disclosed that since the announcement of the restrictions on Monday, they have been receiving few customers at their money transfer section.
Operators in five bureau de change businesses also confirmed the scaled downed transactions. One of them said he has not got a single
customer since after the announcement and that this is already impacting negatively on his business.
“This prompt restriction should have been announced in advance to get them adjust to it. They should have informed us in advance that by this date restrictions will be imposed on this and this currency to be exchanged on such and such rate, etc.,” he said.
He said now the Dollar is D35 for buying and D36 for selling, the Euro is D40 for buying and D41 for selling while the Pound Sterling is buying at D50 and selling at D51.
“The international exchange rate for the Pound is D61 for buying and D63 for selling with the old rate buying at D69 and selling D70, US Dollar buying at D47 and selling at D48 and the Euro buying at D49 and selling at D51,” he said.
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| Momodou |
Posted - 07 May 2015 : 15:53:35
Related Topic from the Archives:
Presidential directive on Foreign Currency
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| Momodou |
Posted - 06 May 2015 : 19:05:30
A GOVERNMENT WITHOUT A FOREIGN EXCHANGE POLICY WHICH IS WHICH, FIXED EXCHANGE RATE OR FLEXIBLE EXCHANGE RATE POLICY?
Foroyaa Editorial: Published on May 6, 2015
The Government claims that it is committed to a flexible exchange Rate policy where the market is left to determine the exchange rate of the dalasi in relation to other foreign currency. Up to 4th May 2015 the exchange rate was determined by the market. Hence, the official interbank rate for the dollar was D51.07.
The Office of the President gave an executive directive on 4th May that the exchange rate of the dollar should be reduced to D50 for the dollar.
Could you imagine the losses to be incurred by those who have already spent dalasis to purchase dollars for sale at the new rate? Suffice it to say that the Central Bank rate is not that of the speculators. It reflects the state of the currency market.
Lack of foreign exchange rate stability would lead to hoarding of foreign exchange whenever there is executive directive to reduce the rate. This may lead to the scarcity of foreign exchange and reduction in capacity to pay for imports. This is a recipe for economic down turn. The real way to protect the value of the dalasi is to increase exports of goods and services. |
| Momodou |
Posted - 05 May 2015 : 20:18:31
Gambia Imposes Restriction on Foreign Currency Export at USD 10,000
By Suwaibou Touray
Foroyaa: Published on May 5, 2015
A press release issued yesterday, 4th May, from the office of the president of the Gambia and read out on GRTS television is informing the general public of its grave concern regarding what it described as “the rapid depreciation of the Gambian Dalasi” against all international currencies, especially the US Dollar. The exchange rate of the country, that is bordered on three sides by Senegal, is now set at 50 dalasi per dollar this week, stated the release.
It is further stated in the release that the amount of foreign currency an individual can take out of the country at a time should not exceed Ten Thousand US Dollars (US$10,000).
“No one is allowed to take more than 10,000 dollars without prior approval from the office of the president and anyone found violating this pronouncement will have his/her money forfeited to the state,” the release stated.
The release also warned that anyone involved in hoarding foreign currency should desist from it otherwise if found culpable, the person will be charged and tried for economic crime.
On 25th November 2014, the Monetary Policy Committee (MPC) of the Gambia Central Bank revealed that the Gambian Dalasi has depreciated against the US dollar by 18.60 percent, Euro by 12.6 percent and Pound Sterling by 20.10 percent.
However, the release added that the Dalasi’s rapid depreciation reaching 50 dalasis to 1 dollar has prompted government to raise concern over the issue, blaming foreign exchange speculators of deliberately hoarding foreign currency which it said is an economic crime.
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| Momodou |
Posted - 05 May 2015 : 18:42:26
They have still not learnt that its market forces which decides the strength of the currency. What does Gambia produce or which services does it provide that can make the currency stronger?
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| toubab1020 |
Posted - 05 May 2015 : 17:51:34
Holidays to The Gambia will no longer be a bargain this directive will have a big effect on the Hotel and tourism Industry. |
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