Gambia’s Central Bank account deficit lowers

Gambia’s Central Bank account deficit lowers

The deficit at the Central Bank of The Gambia has taken a nosedive, declining by 22.8 percent in less than a year since the ouster of former president, Yahya Jammeh.

The Bank’s chief executive, Governor Bakary Jammeh said the account deficit at the country’s reserve bank declined from $59.9 million (D2.76 billion dalasis) to $46.2 million (D2.13 billion dalasis)

The improvements are noticed alongside the increment in the country foreign exchange reserves, which has grown from one month of imports to meeting at least three months of imports.

Former President Jammeh is accused of ransacking the Central Bank, using executive directives to take millions from the bank and leaving it on overdraft and no money to lend to other financial institutions.

Former bank governor, Amadou Colley told a Commission investigating Jammeh’s financial mismanagement that the bank is sometimes forced to sell treasury bills in order to meet Jammeh’s demand for money.

New President Adama Barrow has sacked senior bank officials including Colley for not following financial regulations and has plans of removing Jammeh face from the dalasi banknotes by next year.

The European Union, IMF, the World Bank and other financial partners of the Gambia have injected at least $120 million into the country’s by July following UN’s call for an urgent support for the country’s broken economy.

The support has kicked life into the economy and saw fuel prices reduced. The prices of a handful of commodities were reduced but the cost of living remains staggeringly high.

Gambia is one of the poorest nations in the world and its citizens have high expectations, which the new government has to manage. At least 72 percent of its rural dwellers are extremely poor and more than 200,000 people are food insecure.

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