The Gambia’s currency, the dalasi, continues to carry its place as Africa’s strongest currency this yr, in response to the central financial institution governor. The dalasi has appreciated by 0.9% towards the U.S. greenback to this point, 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 finances funding and disbursements underneath an International Monetary 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, on account of anticipated progress in remittances.
In the primary two months of this yr alone, Gambia acquired $129.7 million from its residents residing overseas. This marks a big improve 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 anticipated to spice up overseas trade inflows additional. In addition to remittances and tourism, the upcoming peanut harvest season can be anticipated to lend additional assist to the dalasi’s energy.
Despite these constructive developments, Gambia is grappling with rising inflation charges. Consumer worth inflation hit 18.4% in July for the second month operating. 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 presently underway.
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