By: Kemo Kanyi
Bakery Jammeh, former Governor of the Central Bank of The Gambia (CBG), has suggested that tackling inflation should be a top priority if the government aims to achieve sustainable economic growth. Jammeh served as CBG Governor from 2017 to 2020.
Speaking on Coffee Time on Monday, Jammeh said inflation must be addressed urgently, noting that economic growth cannot be realized when citizens are struggling with the high cost of living. He emphasized that price stability must be the government’s foremost economic focus.
“If inflation remains high, interest rates are also high. And when interest rates are high, it becomes problematic for the government, as it will be forced to borrow from domestic financial institutions at already high rates. That affects government financing,” he explained. “It’s important that we give precedence to price stability. Economic stability is a precondition for growth.”
Jammeh further outlined several key factors that must be considered in efforts to curb the country’s high inflation rate. These include aligning the money supply with economic activity, raising interest rates, ensuring government expenditure is consistent with inflation control objectives, and lowering the Monetary Policy Rate (MPR).
He stressed that coordination between the Central Bank and the Ministry of Finance and Economic Affairs is essential to effectively tackle inflation.
On the issue of the downfall of Mega Bank, Jammeh stated that the bank’s liquidation was primarily due to Non-Performing Loans (NPLs) bank loans that are either subject to delayed repayment or are unlikely to be repaid in full by borrowers.
