The dalasi update

The Dalasi is losing some grounds at trading this week in all our banks except PHB which is stable as per last week’s trading figures. That is some good work on the part of the management and staff of the PHB which is also good for our Dalasi.

All other banks are saying the Dalasi is losing some trading clout to major world currencies notably the US Dollar and Pound Sterling. However, the losses are not very significant. We at Market Beat hope it is only a blip or a one-off and nothing otherwise. However, in the subsequent weeks, if this slide continues, then we must act but for now it is trading as usual.

The US Dollar
Despite the turmoil in the USA Financial Sector which resulted in bringing Fannie Mae and Freddie Mac the two pension scheme administrators in the USA under Federal Government stewardship and the bailing out of AIG, the Dollar did not lose a single Cent against our Dalasi. This may be partly due to the fact there is a huge demand for the Dollar within the USA as banks struggle to cope with the financial uncertainty.

Many traditional estate and mortgage banks such as Goldsman Sacs, Bearn Stearns, and Morgan Stanley are now accepting deposits and opening personal accounts for individuals in order to boost their cash flows and navigate a way out of this financial abyss. The coming together of Western Central Banks to put off the fire engulfing American financial institutions may be source for the Dollar’s strength this week.

These are interesting new developments and I personally think it is just the start of the credit crunch and the financial mess that the USA economy is plunged into.  

Market Beat is privileged to bring to you the currency tables as we buy and sell in our major banks as dictated by the Central Bank of the Gambia (CBG) as at 20th. September 2008.