The Monetary Policy Committee (MPC) of the Central Bank of the Gambia has revealed that the domestic debt stock of the country has increased by two billion and seventy seven million dalasis (D2.77 billion), adding that this increment has spurred the country’s current domestic debt to D37. 32billion).
This revelation was made by the Chairman of the Monetary Policy Committee, Governor Buah Saidy on Thursday, 25th November, 2021 at presser held at the Central Bank of The Gambia.
“Total outstanding domestic debt stock rose by D2.77 billion to D37.32 billion in the year to end-October 2021, compared to D34.55 billion in the corresponding period in 2020.
The modest growth in the debt stock was driven partly by widened fiscal deficit financed through bond insurances as well as the government’s ongoing debt management strategy of re-profiling the debt stock to create fiscal space,” Chairman MPC revealed.
He added: ” Consequently, significant progress has been realised in terms of re-profiling the debt stock as evident in the following: at end-October 2022, the short-term, medium-term, and long-term debt securities accounted for 53.6 percent, 23.3 percent, and 24.1 percent of the outstanding debt relative to 59.3 percent, 13.6 percent, and 27.0 percent, respectively in the same period.”
According to him, private remittances continued to be the main source of the foreign exchange inflows in the domestic foreign exchange market during the period, adding that the total volumes of remittances inflows from January to October 2021 outperformed the whole of 2020 remittances inflows by 11.4 percent to stand at US$657.22 million.
He added that rates traded in the foreign exchange market remained stable due largely to the strong remittances inflows recorded in the country, adducing that the dalasi is depreciating against major international currencies except for the dollar.
“On annual basis, the Dalasi marginally weakened against the Euro, the Pound Sterling and CFA Franc by 2.8 percent, 6.8 percent, and 6.6 percent respectively, but appreciated against the US Dollar by 1.0 percent as at end-September 2021,” CGB Governor disclosed.
MPC Chairman also highlighted that the Gambian economy contracted by 0.2 percent in 2020, lower than 6.2 percent growth registered in 2019, noting that the significant decline in real GDP growth in 2020 was due largely to the impact of the Covid-19 pandenic whose effects are still felt around the world.
He continued that the economy of the country is expected to recover in 2021, due to easing restrictions in the Covid-19, protocols in many countries, adding that the anticipated economic growth is anchored on the recoveries in the tourism and trade sectors as well as the continuous support of fiscal and monetary policies.
“Consequently the IMF and the Gambian authorities forecast real GDP growth of 4.9 percent in 2021,” CBG Governor, Buah Saidy submitted to the press.
The Committee has taken key decisions that include: Maintaining the Policy rate (MPR) at 10 percent; maintaining the required reserve (RR) at 13 percent; and maintaining the interest rate on the standing lending facility at 11.0 percent (MPR plus 1 percentage point).
