Back and Next - Back and NextMARKET BEAT: The Dalasi Update
Tuesday, December 16, 2008
We welcome you to Dalasi Update (DUD) after a much averagely hyped shopping and spending spree.
In this week’s analysis the Dalasi overall presented and posted a mixed picture in it trading against major world currencies notably the US Dollar and Pound Sterling. However, to my disappointment despite the crude oil price slump and the entrance of new crops harvest which should have enabled the Gambian markets to respond positively and make some major gains against major world currencies this has not been the case.
In the same telescope, there is still room for recovery and improvement as we all brace up Christmas and New Year feast and activities. The following activities will however swing the Dalasi either way and I do hope it swings in our favour, thus:
The foreign remittances
With the Tabaski gone and the Christmas to follow soon I expect a huge foreign currency transfer into the country from people outside in USA, Britain, Angola, Canada and other countries to their families back here in the Gambia. These remittances run into hundreds and hundreds of thousands of Pounds Sterling and US Dollars which will also ease the foreign currency demand and need in our markets and thereby strengthened the Dalasi.
In saying that, I will urge the Central Bank with the proliferation of Foreign Exchange Bureaus to formalize and document how much monies flow into this country from informal avenues by way of remittances and family support schemes by people and philanthropists living abroad. This data will be very significant and important to national development and decision for action on tax and other government demographic needs.
The ram sales after effects
Our markets were invaded with rams from the neighbouring countries notably Senegal and Mali has had a mixed reaction with trading on the CFA (5000). Remember almost 7 out of every 10 rams come across the border and these traders will ask for CFA in exchange for the Dalasi after their sales.
There was a huge demand for CFA within our markets and the Dalasi responded favourably as it manages to stabilize the buy and sell figures against the CFA (5000). Out of our 10 banks, 2 lost grounds, 4 gained grounds, 3 non movers and no figures available from FIB on the Dalasi Vs CFA (5000).
Please cut the price of diesel for a better Dalasi
The price of a barrel of crude oil has slumped from 147 Dollars per barrel to 47 Dollars. As motorists and consumers we were subjected to a price hike when there was this change in world market price changes. As a nation we are silently watching and waiting as we expect an equal response when the tides turn and they have done now. The government should as a matter of salvaging the Dalasi further and improving the lives of the citizenry instituted and instructs the dealers in Diesel and patrol to cut prices.
Mathematically, if when prices were $147 per barrel the cost of a liter of Diesel in The Gambia was D33 then if the price of a barrel goes down to $47 then the cost of a liter of diesel in The Gambia should be cross multiply and it give you D10.56. This will lessen the burden on the demand on the Dalasi for foreign currencies and individually benefit us all by way of reduced fares. The cost of food will also go down as the price of fuel that was added to food stuff will also be chopped leaving us with more Bututs for other pressing needs.
The cost of other essentials will also be reduced as the transport fraction of the cost of these materials is now halved so there by improving our spending and purchasing power as a nation. A liter of Diesel could be sold as little as 15 Dalasi and still it is good business for the patrol dealers in this country. In Senegal, there have been price cuts in the cost of diesel responding to the slump in prices on the world market scene so why not here?
Losses:
AGIB, TBL and SCBG are the banks this week to register almost all losses in all currencies at trading from our last two weeks trading figures.
Non Movers:
BANK PHB is the only non mover this week.
Gains:
BSIC is the only bank to register gains in all but five currencies which are non movers from last two weeks trading figures.
Mixed Picture:
GTB, ICBG, ECOBANK and ACCESS are the banks that are posting a mixed picture with some gains, some losses and some non movers in their respective currency dealings this week while no figures are available from FIB this week. In that vein, Market Beat has the privilege to bring to you the Indicative Rates currency tables as we buy and sell in a selection of our major banks as dictated by the Central Bank of the Gambia (CBG) as at the 12th.December 2008, thus:
In this week’s analysis the Dalasi overall presented and posted a mixed picture in it trading against major world currencies notably the US Dollar and Pound Sterling. However, to my disappointment despite the crude oil price slump and the entrance of new crops harvest which should have enabled the Gambian markets to respond positively and make some major gains against major world currencies this has not been the case.
In the same telescope, there is still room for recovery and improvement as we all brace up Christmas and New Year feast and activities. The following activities will however swing the Dalasi either way and I do hope it swings in our favour, thus:
The foreign remittances
With the Tabaski gone and the Christmas to follow soon I expect a huge foreign currency transfer into the country from people outside in USA, Britain, Angola, Canada and other countries to their families back here in the Gambia. These remittances run into hundreds and hundreds of thousands of Pounds Sterling and US Dollars which will also ease the foreign currency demand and need in our markets and thereby strengthened the Dalasi.
In saying that, I will urge the Central Bank with the proliferation of Foreign Exchange Bureaus to formalize and document how much monies flow into this country from informal avenues by way of remittances and family support schemes by people and philanthropists living abroad. This data will be very significant and important to national development and decision for action on tax and other government demographic needs.
The ram sales after effects
Our markets were invaded with rams from the neighbouring countries notably Senegal and Mali has had a mixed reaction with trading on the CFA (5000). Remember almost 7 out of every 10 rams come across the border and these traders will ask for CFA in exchange for the Dalasi after their sales.
There was a huge demand for CFA within our markets and the Dalasi responded favourably as it manages to stabilize the buy and sell figures against the CFA (5000). Out of our 10 banks, 2 lost grounds, 4 gained grounds, 3 non movers and no figures available from FIB on the Dalasi Vs CFA (5000).
Please cut the price of diesel for a better Dalasi
The price of a barrel of crude oil has slumped from 147 Dollars per barrel to 47 Dollars. As motorists and consumers we were subjected to a price hike when there was this change in world market price changes. As a nation we are silently watching and waiting as we expect an equal response when the tides turn and they have done now. The government should as a matter of salvaging the Dalasi further and improving the lives of the citizenry instituted and instructs the dealers in Diesel and patrol to cut prices.
Mathematically, if when prices were $147 per barrel the cost of a liter of Diesel in The Gambia was D33 then if the price of a barrel goes down to $47 then the cost of a liter of diesel in The Gambia should be cross multiply and it give you D10.56. This will lessen the burden on the demand on the Dalasi for foreign currencies and individually benefit us all by way of reduced fares. The cost of food will also go down as the price of fuel that was added to food stuff will also be chopped leaving us with more Bututs for other pressing needs.
The cost of other essentials will also be reduced as the transport fraction of the cost of these materials is now halved so there by improving our spending and purchasing power as a nation. A liter of Diesel could be sold as little as 15 Dalasi and still it is good business for the patrol dealers in this country. In Senegal, there have been price cuts in the cost of diesel responding to the slump in prices on the world market scene so why not here?
Losses:
AGIB, TBL and SCBG are the banks this week to register almost all losses in all currencies at trading from our last two weeks trading figures.
Non Movers:
BANK PHB is the only non mover this week.
Gains:
BSIC is the only bank to register gains in all but five currencies which are non movers from last two weeks trading figures.
Mixed Picture:
GTB, ICBG, ECOBANK and ACCESS are the banks that are posting a mixed picture with some gains, some losses and some non movers in their respective currency dealings this week while no figures are available from FIB this week. In that vein, Market Beat has the privilege to bring to you the Indicative Rates currency tables as we buy and sell in a selection of our major banks as dictated by the Central Bank of the Gambia (CBG) as at the 12th.December 2008, thus:
Author: By Momodou Camara
See Also - See Also