Gambia stabilizes its reserves after political turmoil

Gambia stabilizes its reserves after political turmoil

Gambia has normalized its foreign exchange reserves and doubled it to more than four months of imports, the country’s Central Bank Governor said.

It is one of the rarest economic gains for the country in nearly a decade, following a two-month long political impasse that left a shock in the country’s economic stability.

The reserves increased more than five folds from $19.84 million to $112.2 million since the former President Yahya Jammeh was ousted and the Barrow administration took over.

“It is such a rare improvement that has not occurred in the country in a very long time. Usually, the reserves stand at two to three months of imports cover,” said Governor Bakary Jammeh.

Gambia’s international partners quickly came to the impoverished nation’s aid after the UN called for urgent support to help stabilize its economy.

The EU, World Bank, African Development Bank and IMF pumped more than $160 million into the Gambia’s economy since February.

The improvement means the Central Bank may not even have to borrow from the commercial banks. Rather, it will be selling its excess forex reserves to them.

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