By: Kemo Kanyi
The Dalasi continues to devalue against all major exchange currencies in the market but the question on the lips of many is: How does acceptance of CFA as a trading currency affect the Dalasi?
In July 2024, the International Monetary Fund (IMF) disclosed that the Gambian dalasi has suffered a 14.7% devaluation against the West African CFA since 2022.
The Voice spoke to several individuals in different regions of The Gambia to sample their opinions on the intrusion of foreign currencies in The Gambia.
A fisherman in the coastal town of Gunjur explained tothis medium that the West African CFA is acceptable as a means of exchange.
“You can buy food items here in Gunjur, using the CFA, and if there’s a change to be refunded, it can be given in CFA or in Gambian Dalasi that depends on one’s preference of currency choice,” he stated.
He added that the same is applicable in the coastal town of Tanji.
A driver in Jarra Soma told this reporter that he sometimes finds it difficult to get to terms with the people who want to exchange CFA with the Dalasi. He said the price they offer as an exchange rate of CFA to Dalasi is unacceptable.
“CFA is highly acceptable here without any issues. Whatever the Dalasi can offer you, the CFA can. You can get into a shop to buy whatever you wish with CFA without any constraints. I think this has really affected the value of our Dalasi,” he stated.
When asked about the situation of CFA in Farafenni, North Bank Region, he implied that it may be evenworse there than in Jarra Soma.
Meanwhile, the main roles of the Central Bank of The Gambia are to achieve and maintain price stability, promote and maintain the stability of the currency of The Gambia, direct and regulate the financial, insurance, banking, and currency system in the interest of the economic development of The Gambia and encourage and promote sustainable economic development and the efficient utilization of the resources of The Gambia through the effective and efficient operation of a financial system.