By Kebba Ansu Manneh
The private remittances of the Gambia have increased remarkably to US$776.67, and the remittances continued to be the main source of foreign exchange in the domestic market in 2021, senior official of the Central Bank of the Gambia revealed on Wednesday.
Speaking at Monetary Policy Committee, Buah Saidy Governor of Central Bank said the volume of foreign currency in the foreign exchange market has rose to US$2.53 billion in 2021.
He told commercial bank managers and journalists that the sales and purchases of foreign currency represented by demand and supply increased by US$0.17 million and US$0.19 million respectively.
“Inflows of private remittances continued to be the main supply source of foreign exchange in the domestic foreign exchange market in 2021. Remittances inflows increased remarkably to US$776.67 million in December, 2021 from US$589.89 million in December, 2020,” C Governor Saidy revealed at the Monetary Policy Committee (MPC) press conference.
He pointed out that the foreign exchange rate of the Dalasi remained stable and resilient in 2021, noting that the situation becomes possible due largely to the sustained remittances coming into the country.
According to him, in the twelve month ending December, 2021, the Dalasi has depreciated against the US Dollar and Pound Sterling by 3.3 percent and 0.2 percent respectively, adding that during the same period the Dalasi has appreciated against the Euro by 2.3 percent.
Governor Saidy, further revealed that the IMF with their Gambian counterparts estimated growth to rebound to 4.9 percent in 2021 and 6.5 in 2022, submitting that this has been premise on the anticipated vaccine roll out and a return to normal economic activity in 2022.
“The banking system financial soundness indicators remained robust characterized by a strong capital base, high liquidity, and lower single digit non-performing loan ratio. In the year end-December 2021, total assets of the industry increased to D73.06 billion from D58.82 billion in the same period a year ago, owing to increases in balances due from other banks, investments and loans and advances,” Governor Saidy stated.
According to him, the outstanding stock of domestic debt increased to D37.19 billion or by 7.1 percent at end-December 2021, compared to 4.3 percent growth in the same period a year ago.
He also said the increased in domestic debt was an account of an increase in bond issuance resulting from implementation of the debt reprofiling strategy.
He added: “Consequently, short-term securities contracted by 2.1 percent and 5.3 percentage points a share of domestic.”
Governor Saidy, the yields in the domestic security market during the review period declined significantly due to the accommodative monetary stance of the bank, revealing the 91-day, 182- day and 364-day Treasury bill yields decreased to 0.72 percent, 0.71 percent, and 1.55percent in December 2021 from 2.75 percent, respectively in December.