Should The Gambia Join a Common West African Monetary Union or Not?
Folks,
The following is a press release that has been doing the rounds in some of the local papers these past days. The reason I am forwarding it is for those who are experts or are conversant with monetary policies or common currency issues to give their opinions about it. The issue of a common West African Currency, slated for 2003, has been the subject of much discussion in certain quarters. There are some who are very enthusiastic about it and how it would help ease the pressure on the demand for foreign (European and US) currencies and help integrate our economies. These people would ask why some neighbouring countries which sometimes share borders cannot trade using their own currencies instead of say the US Dollar. Others who are skeptical of a Common West African Currency on the other hand would argue that Gambia’s Dalasi is very strong and should not be sacrificed for a common currency. Some of them would tell you that it would be suicidal for The Gambia to join a common currency especially when one considers the turmoil in countries like Nigeria, Liberia, Sierra Leone and until recently Ghana.
With this background, I hope those conversant with monetary policies and international trade would give their take on the issue. I must stress here that this is not an APRC or Jammeh thing. This is an issue that would affect all of us, whether you like the government or not or live abroad or not. For this reason, I am please appealing to those who, like me, know very little about the issue at hand to just ask questions and not muddy the discussions. Those of you in the EU, where the Euro was launched a few months back give their opinion of how this change is being handled both at government level and by individual citizens.
On many occasions people have criticized National Assembly Members as inept and usually not of very high caliber. Now is the chance for the L’s National Assembly to debate this issue so that when it is tabled before our NA some of them may have known some of the pros and cons of joining or not joining a common currency.
Have a good day, Gassa.
Launching ceremony for the sensitization programme on the second West African Monetary Zone
The Central Bank of The Gambia and the Department Of State for Finance and Economic Affairs on the 28th March 2002 organized a launching ceremony in the form of a one-day seminar for the sensitization programme on the second West African Monetary Zone. The seminar took place at the Kairaba Hotel in Kololi.
Common currencies are the strength of most sub-regional economies such as Europe and other parts of the world.
The West African Common Currency will be handled by the proposed West African Central Bank for the second Monetary Zone.
· Integration of the economies of the countries involved within the sub-region and saving in the use of foreign exchange in intra-regional trade payment transaction;
· Cross-border payments, trade and investment within the sub-region;
· A single regional market over a wider geographical area of 16 countries with over 210 million people;
· Greater inflow of foreign capital and thus stemming capital flight as a result of improved credibility of the region in international monetary and financial circles.
The single currency will come into effect in 2003 in all six member states of the second monetary zone.
I suspect that The Gambia is one on those countries that would likely join the proposed West African Monetary Union (Common Currency).