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Santanfara
3460 Posts |
 Posted - 26 Sep 2007 : 13:16:32
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what is the real situation regarding our dalasi ? who to believe .
mr bayang have his say .http://www.allgambian.net/enterprisedetail.aspx?id=3
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Surah- Ar-Rum 30-22
"And among His signs is the creation of heavens and the earth, and the difference of your languages and colours. verily, in that are indeed signs for men of sound knowledge." Qu'ran
www.suntoumana.blogspot.com |
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jambo
3300 Posts |
Posted - 26 Sep 2007 : 13:31:36
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| this was a very informative piece, especially the last paragraph. |
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toubab1020
12314 Posts |
Posted - 26 Sep 2007 : 14:06:09
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| Mr Bayang,makes a lot of sense his arguements are well reasoned,I have not heard of this man before, does anyone have any information about him,he is very interesting ? |
"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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BambaLaye
USA
100 Posts |
Posted - 26 Sep 2007 : 15:55:08
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Sarjo has done a great job in explaining the local economy side of the equation. There is the other side of the so called "Dalasi appreciation" equation most of us miss. The economies backing the major world currencies have been hit hard of late. The mortgage loans crisis in the US and UK coupled with rising interest rates have a direct effect on the value of the dollar and the pound in the world market. We need to remember that most economies keep their reserves mainly in dollars and for prudence sake have their hawkish eyes on what the American economy is doing. This inturn dictates the demand and supply behavior of the US dollar in the currency market. Hence the recent move by Ben Bernanky to raise interest rates etc. When was the last time the US dollar was at par with the Canadian dollar? Anyone?
Of course this is the simplistic view of the current crisis and I will not even venture to go into the more complex areas of international capital market behavior. What is going on has very little to do with any movement within the Gambian economy. Let the fools rant and rave about "the good work they are doing" and watch the realities of globalization hit their behind in the very short term. The dollar and the pound are poised to get back up sooner than most of us would like to think...watch this space. |
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Edited by - BambaLaye on 26 Sep 2007 15:57:29 |
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jambo
3300 Posts |
Posted - 26 Sep 2007 : 16:06:19
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| another informative piece, so we in the strong currency countries should we be stockpiling our $ or £. |
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toubab1020
12314 Posts |
Posted - 26 Sep 2007 : 16:12:02
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| Jah Rastafari Bro. Bambalaye!! |
"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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Edited by - toubab1020 on 26 Sep 2007 16:12:45 |
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BambaLaye
USA
100 Posts |
Posted - 26 Sep 2007 : 17:29:52
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Nuff respect!
Jah bliss... |
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kondorong
Gambia
4380 Posts |
Posted - 26 Sep 2007 : 18:53:57
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quote:
Originally posted by toubab1020
Mr Bayang,makes a lot of sense his arguements are well reasoned,I have not heard of this man before, does anyone have any information about him,he is very interesting ?
I used to know one Sarjo Bayang who worked at IBAS. He is a well educated person in micro-finance. He was a very senior official in that department. IBAS (Indegineous Business Advisory Services) was created after the ERP (Economic Recovery Programme) of 1985 to provide loans and trainning to retrenched public officials.
If its the same person, then i am not suprised by his level of intellect. But names duplicate so much in Gambia, that it could be another Sarjo Bayang. |
“When I despair, I remember that all through history the way of truth and love have always won. There have been tyrants and murderers, and for a time, they can seem invincible, but in the end, they always fall. Think of it--always.” |
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toubab1020
12314 Posts |
Posted - 26 Sep 2007 : 20:47:22
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Well whoever he is I like his Style!
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"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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Santanfara
3460 Posts |
Posted - 26 Sep 2007 : 23:54:39
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| kondo ,it is the same sarjor bayang .has a coloum in allgambian enterprise development .he is the editor in chief of allgambian online news . |
Surah- Ar-Rum 30-22
"And among His signs is the creation of heavens and the earth, and the difference of your languages and colours. verily, in that are indeed signs for men of sound knowledge." Qu'ran
www.suntoumana.blogspot.com |
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ylowe
USA
217 Posts |
Posted - 27 Sep 2007 : 02:03:05
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A recession is when your neighbor doesn’t have food to eat and a depression is when you don’t have food to eat. From the above statement we can say the Gambian is already in a recession.
The value of the dalasi has been appreciating almost on a daily basis and prices of commodities remains stagnant. This I believe is very funny because according to the laws of demand and supply prices should be going down not just for the month of Ramadan. The Gambia is a small open economy with floating exchange rates and the value of the dalasi depends on the availability of foreign exchange in the country. One thing that is unexplainable is why we all of a sudden have excess foreign exchange to make the dalasi so strong. I looked at the figures coming from the central bank to explain the appreciation of the dalasi and I must admit that am not convinced and I believe the dalasi is stronger due to the tightening of monetary policy and others factors such as a weaker dollar just like Bambalaye said.
Stronger dalasi will make exports expensive in the eyes of the foreigner and therefore making our exports more expensive to foreigners. Another effect of a stronger dalasi will ruin our greatest foreign exchange earner which is tourism. Tourists will begin to see the Gambia as an expensive destination and not affordable to a lot of them thereby causing them to look for cheaper destinations.
We are also more likely to see capital flights because investors with the foreign currency are most likely to remit their capital to other destination where it earns them more.Finally I think there is a bubble and it is about to burst. My advice is to increase the amount of dalasi in circulation.
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BambaLaye
USA
100 Posts |
Posted - 28 Sep 2007 : 05:26:50
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| Thanks Ylowe for another brilliant perspective. You succeeded in simplifying what could otherwise be complex to the lay man. Thanks again. |
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jambo
3300 Posts |
Posted - 28 Sep 2007 : 11:16:58
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But will they increase the amount of dls in the circulation.
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ylowe
USA
217 Posts |
Posted - 28 Sep 2007 : 14:13:40
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| Jambo, i believe there is few dalasis chasing too many foreign exchange and to avoid the over valuation of the dalasi it needs to be increased. |
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BambaLaye
USA
100 Posts |
Posted - 28 Sep 2007 : 16:11:27
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| Apparently, Dalasi notes are pumped into the economy only during election period. Not before, not after for obvious reasons. There's enough evidence to support this A(F)PRC monetary policy. So, wait for 2011 and who knows, more new notes or perhpas a D1,000 note might be introduced then. (If he's still around)-:) |
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kobo
United Kingdom
7765 Posts |
Posted - 28 Sep 2007 : 17:59:19
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QUOTE EXTRACTED FROM Sarjo Banyang's article:-
"Corruption at higher levels can be a recipe for infiltration of our financial system by illicit money dealers. "
Thats activities of the black market. There are too many MONEY TRANSFER AGENTS culminating in forming AN (FORMAL) ASSOCIATION; makes me supicious that they can exploit THAT ASSOCIATION to control /dictate foreign exchange rates (in collaboration with scrupolous persons in BANKING /FINANCIAL SERVICES & IMPORTERS) to make more PROFIT ON THE SPECULATIVE MARKET!
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