Suntou, I think we need an independent analyst... Omar has been too indoctrinated!!! Any takers out there??? Burama Jammeh... Laye would be a good one too - finance???? Thanks Demba On Mon, Feb 20, 2012 at 11:14 AM, Bolonba <[log in to unmask]> wrote: > Demba, don't worry our junior economist is at hand to decipher the > details. Sinyo kuu buka sinyo karr. Suntou > > Sent from my iPhone > > On 20 Feb 2012, at 18:54, Demba Baldeh <[log in to unmask]> wrote: > > Laye, > > Hmmmmmm!!! this is an interesting position from the IMF and it should be > worrisome for our little Gambia... I wonder what happened to the good > economic growth forecast that was recently louded by the World financial > body? It is certainly starting to trickle bit by bit that all factors use > to assess the economic health of a nation were not used.. > > We need an economist to explain the ramifications of this possible > devaluation... Any recommendations who we can talk to out there? > > Thanks > > Demba > > On Mon, Feb 20, 2012 at 7:05 AM, Laye Jallow <[log in to unmask]> wrote: > >> IMF: Gambian currency may be overvalued >> >> http://www.africanews.com/site/IMF_Gambian_currency_may_be_overvalued/list_messages/41132 >> >> Posted on Monday 20 February 2012 - 10:28<http://www.africanews.com/site/list_message/37237#m37237> >> Madi Njie, AfricaNews reporter in Serekunda, Gambia >> *The International Monetary Fund has indicates that the local currency, >> the Gambian Dalasi, may be overvalued by 17 percent. According to IMF >> report, "a number of complementary approaches were adopted to assess >> whether the Gambia's exchange rate is aligned with fundamentals.* >> >> These alternative approaches proposed by the IMF Consultative Group on >> Exchange Rate issues include the macroeconomic balance approach, the >> external sustainability approach and equilibrium real exchange rate >> approach.” >> >> According to the report, the purchasing power parity approach was also >> involved in the assessment, pointing out that these alternative approaches >> produce somewhat different results. >> >> “The macroeconomic balance approach suggests that the Dalasi may be >> overvalued by 17 percent. The country’s underlying current account deficit >> is 12 Percent of Gross Domestic Product (GDP). The underlying fundamental >> driving this result is the large fiscal deficits in recent years. >> >> Temporary factors such as Government’s financial external payments for a >> large telecommunications project also played a role. With an estimated >> current account norm of about 2 percent, roughly in line with estimates in >> past assessments, a depreciation of 17 per cent would be needed to restore >> sustainability.” >> >> The report outlined that the external sustainability approach indicates >> an overvaluation of 8½ percent. >> >> The report published by Gambia local newspaper- Foroyaa, adds, “With an >> underlying current account balance of 12 Percent of GDP, The Gambia’s long >> run net foreign assets would be unsustainable at about -138 percent of GDP >> in order to bring the NFA to a sustainable level of -70 percent of GDP, >> that the exchange rate would require a depreciation of 8 ½ percent with a >> corresponding current account deficit of 6 ½ percent of GDP”, the report >> states. >> >> >> -- >> -Laye >> ============================== >> "With fair speech thou might have thy will, >> With it thou might thy self spoil." >> --The R.M >> ¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤ To >> unsubscribe/subscribe or view archives of postings, go to the Gambia-L Web >> interface at: http://listserv.icors.org/archives/gambia-l.html >> >> To Search in the Gambia-L archives, go to: >> http://listserv.icors.org/SCRIPTS/WA-ICORS.EXE?S1=gambia-l To contact >> the List Management, please send an e-mail to: >> [log in to unmask]¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤ >> > > > > -- > *"Be the change you want to see in the World"* > ¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤ To > unsubscribe/subscribe or view archives of postings, go to the Gambia-L Web > interface at: http://listserv.icors.org/archives/gambia-l.html > > To Search in the Gambia-L archives, go to: > http://listserv.icors.org/SCRIPTS/WA-ICORS.EXE?S1=gambia-l To contact the > List Management, please send an e-mail to: > [log in to unmask]¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤ > > ¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤ To > unsubscribe/subscribe or view archives of postings, go to the Gambia-L Web > interface at: http://listserv.icors.org/archives/gambia-l.html > > To Search in the Gambia-L archives, go to: > http://listserv.icors.org/SCRIPTS/WA-ICORS.EXE?S1=gambia-l To contact the > List Management, please send an e-mail to: > [log in to unmask]¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤ > -- *"Be the change you want to see in the World"* ¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤ To unsubscribe/subscribe or view archives of postings, go to the Gambia-L Web interface at: http://listserv.icors.org/archives/gambia-l.html To Search in the Gambia-L archives, go to: http://listserv.icors.org/SCRIPTS/WA-ICORS.EXE?S1=gambia-l To contact the List Management, please send an e-mail to: [log in to unmask] ¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤