The Deputy Governor of the Central Bank of the Gambia, Paul Mendy recently disclosed that the financial sector has remained stable and resilient with robust liquidity and capital adequacy ratios. And also that in 2020 the Gross Domestic Product grew by 0.6percent and in 2021, which was estimated to have grown by 4.3percent.
Speaking on behalf of the Central Bank Governor at the 5th annual Gambia Bankers Award Night held on Saturday, 25th June at the Sir Dawda Kairaba Jawara International Conference center, he said supply shocks persist while the uncertain global economic environment has dampened consumer and business confidence in the domestic economy, while they have the will and the commitment to resolving the challenges that lie ahead.
Mr Mendy said with private sector participation and effective domestic resource mobilization, sustainable and inclusive growth is not beyond reach in the country, as part of its inclusive finance and financial deepening, the Central Bank of the Gambia in collaboration with development partners launched the financial inclusion strategy, which was aimed at on-boarding the unbanked part of the community.
He went on that the CBG also adopted the digitalization agenda to promote among others, interoperability of all payment platforms, including mobile phone companies, and the promotion of fintech start-ups, that digitalization improves efficiency in terms of speed and cost of transactions, hence promotes financial inclusion.
He said digitalization might not eliminate structural barriers to inclusiveness, but it can mitigate some of the market imperfections inhibiting inclusiveness. Already, several central banks around the world are considering the introduction of Central Bank digital currencies, which represent fiat currency in digital form, and with sovereign backing.
He pointed out that the digitalization alone is not the silver bullet capable of eliminating all of their challenges, and that it requires the cooperation of all stakeholders, particularly in the establishment of key institutions such as the proposed capital market, interoperability of all payment platforms including banks, the mobile wallet provides and other fin-tech services.
He applauded the regulated institutions, the managing directors, and their staff, for their continuous cooperation, without which the achievement of financial stability would be difficult.
