Central Bank on Recent Appreciation of the Dalasi

Following the recent steady but appreciable rise in the value of the Dalasi against major foreign currencies, the Central Bank of The Gambia has issued a press release to give the background and the likely corollary to what has been acclaimed by many as an agreeable state of affairs.

The Central Bank release explained that the Dalasi had been through various phases, noting that in 2003 it had experienced a slump briefly before rising in 2004.

The Bank however assured that it had always been part of the exchange rate policy to maintain the exchange rate of the Dalasi at such a level that it would hold its own against other major currencies “to promote efficient allocation of resources as well as support macroeconomic stability and growth.”

The Central Bank statement went on to portray the ups and downs that the Dalasi went through, giving reasons for its recovery from such spells of depression. This was attributed to increase in economic growth, fall in inflation and external reserves. The statement rounded off the Dalasi’s variegated fortunes with its recent rise and forecasting that the trend is likely to persist for the foreseeable future.

The Central Bank warned all foreign exchange dealers to desist from what it called speculatory and hoarding activities, threatening serious consequences in the event of default on the part of any culprit. This, it said, is to ensure that the gains so far made could be consolidated.