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ylowe
USA
217 Posts |
 Posted - 03 May 2006 : 07:56:37
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Just wondering ?
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OB1
84 Posts |
Posted - 03 May 2006 : 13:27:53
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| No....the issue is Discipline and a strong monetary policy; even if it were fixed, without these, there would be no point. Consider that from 1985-1994 the dalasi held against the pound from about D5 to £1 to about D10 to £1 by 1994. From 1994 to date it has moved from D10 to D48………. |
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njucks
Gambia
1131 Posts |
Posted - 03 May 2006 : 16:04:06
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ylowe
personally i think it depends on many factors (like the nature of industries,export). our problem is to deal with the ''yaichi katyee'' from Guinea. if you approach them with £100,000 they will change it. where do they get the money from. they should all be deported as its illegal and even against the ECOWAS treaty. its not a job so after 90 days they should leave. even the hotels are now playing this stupid game with them encouraging tourists to change their money through these guys and not the formal banking system.
if you peg/fix the currency you loose some central banking independence. but there is some merit in doing so. a good example is China which has pegged its currency to the dollar for the last 20yrs and enjoyed significant growth. the CFA is also pegged to the EURO and there is higher growth in these countries too.
if i had a choice i would peg the dalasis too, atleast for 10yrs and see. two currencies come into mind the Pound and the Swiss franc not because of strenght but stability.
i dont agree with OBi as a strong currency is not necessarily a good thing especially if you depend on exports (for us tourism). one the other hand if you import alot like we do you need a strong currency to buy things cheaply. difficult i guess. but if your currency is too strong your goods become too expensive and the volume of trade shrinks.you need to have the money first before you can buy, otherwise you borrow.
i would vote for pegging it to a basket of the Swiss Franc or British Pound
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Edited by - njucks on 03 May 2006 16:04:41 |
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kondorong
Gambia
4380 Posts |
Posted - 03 May 2006 : 19:15:36
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This is real economics. However, there is a joke about an economist. They are described as people who will tell you tomorrow why their projects of today failed. It is just a joke.
The strength of the dalasi should be dependent on what is strategy our planners have. Right now we import more than we export. A very strong dalasi will mean that imports will be cheap but a strong dalasi is also not good for tourism. This is because the tourists that come to Gambia are not high spending ones who mostly travel to Kenya for example. Therefore, a strong dalasi will put them off.May be what we need to do is improve our productive base. Produce enough to export. This will reduce our balance of trade, create jobs at home and then earn foreign currency. Instead of exporting cotton, make cloth and save on imports, instead of exporting fish, make sardines and fish products that we end up importing, instead of selling raw peanuts and then import oil, produce enough oil at home. The same can be done with soap. Even with sankung sillah's high quality soap he cannot meet local demand.There are many areas we need to be productive. Eventually, we will have jobs, export and earn forex for our international trade and improve our import cover and still have a healthy reserve for a rainy day.HOWEVER, NAWEC HAS TO PROVIDE THE ENERGY FOR THE ABOVE TO TAKE PLACE. NAWEC IS THE NUMBER NATIONAL DEVELOPMENT PROBLEM. EVERYTHING ELSE SHOULD FOLLOW QUITE EASILY. (MY BELIVE)
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“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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ylowe
USA
217 Posts |
Posted - 04 May 2006 : 01:59:24
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Njucks and Kondorong
You guy agreed that that a strong dalasi will make exports expensive in the eyes of foreigners and in our case will discourage tourist from coming to the gambia. It will also make imports cheap in the eyes of Gambians. On the otherhand a weaker dalasi will make imports expensive in gambia and encourage export(tourism, etc, etc). The big question is do we grow by imports or exports? |
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kondorong
Gambia
4380 Posts |
Posted - 04 May 2006 : 02:06:51
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| Njuks is the expert. |
“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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ylowe
USA
217 Posts |
Posted - 04 May 2006 : 07:27:12
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Kondorong
Njucks is not the only expert here you are an expert too. I like your joke about economists. Former president Reagan once asked for an economist who is going to tell him whats gonna happen and not talk about on the otherhand.laugh |
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kondorong
Gambia
4380 Posts |
Posted - 04 May 2006 : 18:36:58
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quote:
Originally posted by ylowe
Kondorong
Njucks is not the only expert here you are an expert too. I like your joke about economists. Former president Reagan once asked for an economist who is going to tell him whats gonna happen and not talk about on the otherhand.laugh
I have studied various postings here and i must say how impressed i am with his postings on economic matters. I tried to provoke a lot of the times to learn more.
My grand father used to play that kind of tricks on us. When ever he wanted to know what we were up to, he would make up a story about our plans. Being very young we would tell him that his guess was wrong and eventually end up telling our plans. It is a trick i still use on my kids. It works.
Njuks no misundersatnding( You are not a kid, just making a point of rerefence) |
“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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