Eye On The Central Bank

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Banjul, The Gambia: building of the Central Bank of The Gambia (CBG) surrounded by tree - the CBG issues the Dalasi, the Gambian currency - photo by M.Torres

The Central Bank of the Gambia is the most important financial institution of the country.

It is the sole banker of the Government and the depository of its revenue and other moneys. This is where accountability starts. The Central Bank ensures that money received on behalf of Government and all withdrawals from the various accounts of the Government are properly recorded.

It also regulates the activities of the banks and insurance companies in the country. In short, it is the financial nerve centre of the economy.

That is precisely the reason why it is important for its autonomy to be enhanced and the security of tenure of its Board of directors guaranteed.

The executive should ensure that it does not tamper with the autonomy of the institution and the security of tenure of the members of its board of directors. Whatever action is taken towards the bank must be reasonable and justifiable to its Board members. A Board is an authority that should be consulted in any decision making affecting its members or the institution over which it exercises direction and control.