The Gambia has a hidden economy which does not depend on exports alone to ensure foreign exchange earnings for the country. The sum in foreign exchange that is traded annually in the banking system amounts to 1.6 Billion dollars or approximately 80 Billion Dalasis.
The official figure for remittances amounts to 191.9 Million dollars or 9595 Billion Dalasi per annum.
Exports decreased to 52.1 Million Dalasi in the first 6 months of 2020. In short, the estimate of remittances is more than what is exported from the country.
The Ministry of Finance and the Central Bank need to do a joint study on financial flows in the country so as to have a greater understanding of the hidden economy.
What is responsible for the huge influx of foreign exchange unto the banking system just for trade in foreign currency without any real impact by way of investments in the productive sectors of the economy.
