© Reuters.
The Gambia’s foreign money, the dalasi, continues to carry its place as Africa’s strongest foreign money this yr, based on the central financial institution governor. The dalasi has appreciated by 0.9% towards the U.S. greenback to date, outperforming 23 different African currencies monitored by monetary analysts.
The central financial institution attributes this sturdy efficiency to elevated inflows from remittances and tourism, in addition to exterior funds funding and disbursements underneath an Worldwide Financial Fund (IMF) program. The governor anticipates an additional rise within the dalasi’s worth towards main buying and selling currencies, primarily the U.S. greenback, because of anticipated progress in remittances.
Within the first two months of this yr alone, Gambia acquired $129.7 million from its residents residing overseas. This marks a big enhance in comparison with $507 million in remittances acquired in 2022. The variety of vacationers visiting the nation additionally elevated considerably final yr, leaping to 174,490 from 102,460 the earlier yr, following a decline to 89,232 in 2020 as a result of Covid-19 pandemic.
The tourism season, which runs from October to December, is predicted to spice up overseas alternate inflows additional. Along with remittances and tourism, the upcoming peanut harvest season can be anticipated to lend additional assist to the dalasi’s power.
Regardless of these optimistic developments, Gambia is grappling with rising inflation charges. Shopper worth inflation hit 18.4% in July for the second month working. The central financial institution governor predicts that inflation will peak in December earlier than falling under 10% by mid-next yr.
In different financial developments, Gambia not too long ago concluded a $94-million prolonged credit score facility with the IMF over a interval of 39 months. Negotiations for a brand new program with the IMF are at present underway.
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