| Author |
 Topic  |
|
toubab1020
12309 Posts |
 Posted - 21 Sep 2007 : 14:32:21
|
Today I wanted to send some money to Gambia, I checked how much Western Union was giving to the pound when its paid out in Gambia ............
36.6Dalasi to £1 
I know money flutuates but this means that Gambians living in the UK and sending money home will have to pay more of their money just to maintain what they sent before thats not taking into account price increses in Gambia,RESULT everyone is poorer and having hard time.
|
"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
|
|
|
Momodou
Denmark
11713 Posts |
Posted - 21 Sep 2007 : 15:25:22
|
I am just a layman with regards to economics but looking at the exchange rates below from Trust Bank, one can understand why comodity prices are still not reduced. The banks are making a lot of money these days from us leaving abroad and at the same time from the importers who want to buy foreign currency.
We need some explaination from an economist on how the foreign currencies can depreciate so much against the dalasi because it looks artificial.
Exchange Rates as of 21st September 2007
Source: Trustbank.gm
Currency Buying Selling
Pound Sterling (GBP) 37.50 46.70
US Dollar (USD) 19.00 21.50
CFA 210.00 245.00
EURO 26.00 29.50
Swedish Kroner (SEK) 280.00 345.00
Norwegian Kroner (NOK) 335.00 430.00
Danish Kroner (DKK) 355.00 460.00
Swiss Franc (CHF) 15.95 16.00
SAR 6.84 7.25
Canadian Dollar (CAD 18.00 21.00
AUD 15.90 16.55
JPY 16.00 19.50 |
A clear conscience fears no accusation - proverb from Sierra Leone |
 |
|
|
jambo
3300 Posts |
Posted - 21 Sep 2007 : 15:48:47
|
a friend is out there now and has been hit by the change, they had planned to do some work on their land, but now cannot afford it.
i plan to pay school fees but will have to re think my budget. this will have a knock on effect right across the board, the less i get for my £, the less i have to spend.
|
|
|
|
toubab1020
12309 Posts |
Posted - 21 Sep 2007 : 17:13:16
|
Looking at the stirling (no pun intended!)work that Momodou has produced, this is VERY serious for all those living in Gambia as it would appear to affect all hard curriencies not only the £. someone somewhere is making a lot of money out of shuffling money around and not doing any work or making anything.The average Gambian will suffer even more,buy your own house or land ? forget it! not even the toubabs can afford that now!!If this position is not sorted out before the "season" really starts,big problem,just watch the holiday prices to Gambia go up.
NO tourists = a big hole in Gambia's economy.
I have just discovered this link that MAY help explain better for those outside the money industry,who only know hard time at the present:
http://allafrica.com/stories/200709210693.html |
"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
|
Edited by - toubab1020 on 21 Sep 2007 18:28:11 |
|
|
|
Lily
United Kingdom
422 Posts |
Posted - 21 Sep 2007 : 18:24:06
|
| This is quite scary for all concerned. On a personal level - like Jambo - some of my budgets (in terms of school and college fees) will need to be re-thought. But at least I have the luxury of being able to do that. Some people (both in Europe and in The Gambia) are going to have some bleak times ahead .... whilst some people grow ever richer. |
|
|
|
gambiabev
United Kingdom
3091 Posts |
Posted - 21 Sep 2007 : 18:56:15
|
My first visits to Gambia it was over 50dls to a £ now it is 40 to a £ or less. Bad news for visitors from UK or for those of us that support students.BUT good news for Gambia economy. It means it is stronger and growing.
But if inflation isnt checked it means hard times for local people trying to buy basic goods. Unless they are employed and receive inflationary wages.
|
|
|
|
tapalapa
United Kingdom
202 Posts |
Posted - 21 Sep 2007 : 19:01:53
|
Well, I sent 6 months rent this week by Western Union and got 38.22 dalasi to the £. I was £80 short this time, whichI had not budgetted for...........I was very surprised at the big change (no oun intended coz there wan`t any change)
Boo Hoo
Tapa
|
|
|
|
jammin
Jamaica
149 Posts |
Posted - 22 Sep 2007 : 20:43:26
|
Seems like the conditions are right for import traders to make a killing. At least thats how it seem to me.
|
Like a colossus He doth bestride the Narrow World |
|
|
|
tapalapa
United Kingdom
202 Posts |
Posted - 22 Sep 2007 : 21:10:21
|
How does this work then Jammin ?
Tapa |
|
|
|
jammin
Jamaica
149 Posts |
Posted - 22 Sep 2007 : 21:32:27
|
this is my layman interpretation.
1. good X ,cost 35 dalasis= 1us (approx)at point of import.
2. price to consumer 36 dalasis
3. inflation move consumer price even further, say 37 dalasis
4.revaluation move dalasis to 34: 1us
thus it is now requiring less dalasis to import good X
but the spread between import price and selling price has moved from 1 dalasi to 3 dalasis.
bigger profits to importers.
i'm no economist, and as i said this is a layman's thought. if you can enlighten me differently, i would welcome it. |
Like a colossus He doth bestride the Narrow World |
|
|
|
toubab1020
12309 Posts |
Posted - 22 Sep 2007 : 22:02:38
|
| Jammin,OK but do inporters pay for goods in Dalasi er........... no in US$ or £GB so taking Momodou's figures, the importers would have a cost of D21.50 for every $1 they require to buy their stock,even though the buying price of $1Us is D19 in Gambia,that's my laymans thought,and as you say if you can elighten me differently, I would welcome it.I again am no economist! |
"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
|
|
|
|
turk
USA
3356 Posts |
Posted - 22 Sep 2007 : 22:34:03
|
That is an Economics 101. If nation's currency gain value. It is good for importers and nations' tourists who spend the dalasi. If nations's currency lose value. It is good news for the exporters, because their prices will be more competitive. Also it is good for other nations who come to Gambia. So now it is not a tourist season. So I see gambian government devalue the currency. But when tourism season opens they reverse the situation.
|
diaspora! Too many Chiefs and Very Few Indians.
Halifa Salah: PDOIS is however realistic. It is fully aware that the Gambian voters are yet to reach a level of political consciousness that they rely on to vote on the basis of Principles, policies and programmes and practices. |
|
|
|
toubab1020
12309 Posts |
Posted - 22 Sep 2007 : 23:30:57
|
| Turk,you seem to know something about this subject, I suspect that Jammin and myself for sure would like to know which of out trains of thought are correct can you help?,I am getting more and more confused!So the Gambian Government has control and not the moneymen or Banks? |
"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
|
|
|
|
turk
USA
3356 Posts |
Posted - 23 Sep 2007 : 00:38:30
|
toubab
I am a techy but let me share what I know. Currency value can be determined differently. I assume you are indeed toubab and live somewhere in Europe. Things in europe does not happen in Gambia when it comes to money. As a general rule of liberal capitalism, government or most important politics should not have much control over money. The reason is for their economic agenda they may do something not good for economy. That is why central bank should be independent and their decision should not be depend on the political agenda of government. Also, ideally, the value of currency should be based on natural forces of economy. Central bank can inject money or play with the interest rates to have impact on the value of currency but that is only playing with the dynamics of natural forces.
On the other hand, I think, in Gambia, the value of currency is determined based on government decision. Central bank in gambia is not independent. That means if jammeh today say, 'let us print money today', or 'today the value of one dalasi is 0.025 instead of 0.02 sterling'. (or 1 sterling is 40 dalasi instead of 50 dalasi), it is done. You decide what the value of money without any natural forces. Gambian dalasi value is not determined by the natural forces of economy. It is determined by political decision. Anyone correct me if i am wrong.
And the big question is the value of dalasi during the year? If dalasi is strong during the off-tourism-season and not so strong during tourism-season. Is that the case? |
diaspora! Too many Chiefs and Very Few Indians.
Halifa Salah: PDOIS is however realistic. It is fully aware that the Gambian voters are yet to reach a level of political consciousness that they rely on to vote on the basis of Principles, policies and programmes and practices. |
Edited by - turk on 23 Sep 2007 00:47:50 |
|
|
|
toubab1020
12309 Posts |
Posted - 23 Sep 2007 : 11:56:00
|
| Thanks TURK,you know what? I am going to go down to the beach,sit on the sand and just chill out,I cant make sense of it at all,but thanks for trying! |
"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
|
Edited by - toubab1020 on 23 Sep 2007 16:07:42 |
|
|
|
toubab1020
12309 Posts |
Posted - 23 Sep 2007 : 18:29:30
|
Ah well, I can go to the beach another day I suppose,.....................look at this from Allafrica.com website,
http://allafrica.com/stories/200709210682.html
|
"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
|
|
|
|
Topic |
|
Topic Locked
