Exchange rate stability has been an objective of every government that has assumed power in The Gambia. However since independence exchange rates continue to be hard to maintain.
The reason for this is simple. The Gambia has been an import oriented instead of being an export oriented country. We need more foreign money to buy foreign goods than people have in buying Gambian goods. Hence export earnings have been failing to be enough to pay for the cost of imports. Trade deficit is chronic and with it goes trade imbalance.
The recent information received by Foroyaa that the dalasi is depreciating against the CFA did not come as a surprise. The Gambia depends on Senegal for energy consumption for a large part of the country. Suffice it to say, vegetables and many other items are increasingly being imported from Senegal. Unless this trend is reversed the dalasi will continue to depreciate against the CFA. The facts are clear and should be taken into account by those who are managing the affairs of the country.
