Mr. Gassama:
I am sorry that a bank official could not give you the Gambian Dalasi history trend. For your information, I used to work at the foreign exchange section of the then Gambia Commercial & Development Bank. Say hi to Pah Njie.
Please visit www.oanda.com./converter/classic. For a mark-up on the dalasi rate per US dollar, please understand that the residual portion stays in the Gambia. For example, the rate of the dalasi to the US dollar was D9.75 at closing date on July 22, 1994, and if the Trust Bank sold a dollar at D12, the residual value of D2.25 was a profit for the domestic (Trust) Bank. In the event that the Bank had to sell the same dollar externally, if things were held constant, meaning that the rate stayed the same at date of sale, the bank would have to sell at a ceiling rate of D9.75 per US Dollar or with any value for up to the flow rate. It is understandable that we recognize the net realizable value, market rate and replacement value.
Further, if the bank wants to buy dollars for dalasis from the Central Bank on July 22, 1994, it would have to pay D9.75 per US Dollar. If again dear brother, the bank sold the same dollar to its customers in profit oriented initiative, it would have to sell the dollar above D9.75. If the dollar increases or decreases in value, the bank will recognize a gain or loss in its external sale. A decrease in the value of the dalasi to the US dollar means that you have to pay more for the dalasi per dollar. If the dalasi increases in value, it means that you have to pay less in dalasis per US dollar. May I reiterate that replacement costs, market rate and net realizable value are important elements? May I further state that we are not dealing in derivatives for speculative foreign currency hedging?
I hope this answers your question. It is vital to not discount the dalasi in our economic basket. As the dalasi is not recognized externally, I am objectively pinpointing that lack of sound fiscal responsibility by the leadership in the Gambia will further sink our country into economic ruin.
Naphiyo,
Comrade ML Jassey-Conteh
Greensboro, NC/Kombo East Constituency
On Tue, 4 Jun 2002 14:15:37 +0000 Jungle Sunrise <[log in to unmask]> wrote:
Thank you Mr. Conteh for the clarification. I am however still sceptical about your rvised rates of the Dollar against the Dalasi for now and 1994. I have tried to get the official exchange rate from the central bank for 1994 but could not. I however managed to speak to a senior official of the bank about the rate of the Dollar in 1994 and he is convinced that it was in the region of D12.00 to D13.00. He has promised to find out for me these days.
If you consider the fact that the exchange rate of the Dollar compared to the Pound sterling, over the past 10 or so years has been in the region of $1.45 to $1.60 ($1.00 being approximately 66% of a pound), then one can assume that the value of the Dollar in Dalasis and the value of the Pound in Dalasis would not deviate a lot from the 66% ratio. Going by this logic, if the Dollar was worth D9.75 as you assert, then the pound should have been approximately D14.77. On the other hand if the pound was worth about D17.00 in 1994, then the Dollar rate could be assumed to have been about D11.22. Considering the above, would you say that the pound was more likely to be worth under D15.00 or around D17.00?
Finally, it is important not to look at the depreciation of the Dalasi over the years in isolation from other currencies particularly those of sub-Saharan Africa. If one compares the performance of other currencies such as the CFA, South African Rand, Ghanaean Cedi, Nigerian Nira, etc, one cannot help but appreciate how the Dalasi has fared against the Dollar. Apart from that, it is also important to factor in other indicators to have a clearer picture of how the Dalasi and Gambian economy has been performing generally.
I admit that we are going through hard times; but it is equally important to note that important steps are being taken to alleviate this. I know that some people would not want to hear this again but some of the policies being implemented would go a long way in helping us come out of our this sorry state. Already significant improvements in infrastrutures, energy, education, health, agriculture, communications, fisheries, tourism etc are being made and it is just a matter of time and we will start seeing some good results. Attitudinal change is also taking place albeit slowly and all these would further help us in our quest to move forward. Let's just keep hope alive.
You may perhaps be interested to visit the worldbank web page at <A href="http://www.worldbank.org/data/countrydata/countrydata.html">http://www.worldbank.org/data/countrydata/countrydata.html</A>
Have a good day, Gassa.
There is a time in the life of every problem when it is big enough to see, yet small enough to solve. -Mike- Levitt-
Get your FREE download of MSN Explorer at <a href='http://g.msn.com/1HM300901/155'>http://explorer.msn.com</a>.
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