Over
the last few months and weeks, we have noticed the depreciation of the Gambian
dalasi, which is presently affecting the daily life of people, especially those
doing business, as trading in goods and services has become more challenging.
We
have noticed that the Euro has gone up by 12 per cent against the dollar and
the CFA has also risen in value against the dalasi.
Currently
major trading currencies such as the Pound Sterling is bought for D62.50 and
sold for D62.00; the dollar is bought for D47.50 and sold for 48.20, the Euro
is bought for D54.25 and sold for D55.25; and the CFA (5000) is bought for D410
and sold for D415.
Each
day prices are shooting up all because of the instability of the dalasi, which,
according to our finding, is precipitated in recent weeks and days mainly by
three major factors: preparation for the hajj, for Tobaski and the tourism off
season.
It
is therefore vital that officials of the Ministry of Finance and the Central
Bank of The Gambia engage in dialogue with foreign exchange dealers to take
remedial actions in solving the exchange rate challenge and price escalation.
Although
excessive demand for foreign currencies always lead to the depreciation of the
local currency it is essential that proper mechanisms are put in place to check
the rate or speed at which the local currency is losing its value so that the
effect on prices of goods and services is cushioned and managed well, thereby
maintaining sanity in the economy and breathing space for the layman who lives
on one or two dollars a day.
If
‘artificial’ factors to inflation such as the pilgrimage to Mecca, and
preparation for Tobaski could cause serious damage to economic stability and
escalate hardship and stress for the people in the country then there is need
for serious tact to handle such situations when they are confronted by the
nation.
Also,
when prices are shot up by factors of inflation it is always difficult to
restore the prices of goods and services affected when such factors have also
been treated and restored.
This
is why we are calling on the relevant authorities to apply their
professionalism and knowledge to mitigate this current challenge and get things
under control.
“Managing
national economy is a feat of tact and tact and tact.”
The
Point
