Gambians Struggle as Currency Depreciation Fuels Economic Hardship
The Gambian dalasi, as soon as a modest image of financial stability, is now crumbling beneath immense strain. Its relentless depreciation in opposition to main foreign exchange such because the US greenback, the Euro, and the British pound has thrown the tiny West African nation into an financial storm, forcing residents to navigate hovering residing prices in a rustic closely depending on imports and remittances.
A 2024 census by the Gambia Bureau of Statistics paints a dire image, a good portion of the nation’s 2.7 million individuals dwell beneath the World Bank’s poverty line. Daily survival has turn into a check of resilience for a lot of Gambians. Between 1990 and 2024, the dalasi misplaced 800% of its worth in opposition to the US greenback, reflecting many years of exterior shocks, home financial mismanagement, and systemic vulnerabilities.
A Market in Decline
At Banjul’s Albert Market, the once-bustling hub of commerce, the influence of the dalasi’s collapse is heartbreakingly evident. Vendors stare at empty stalls and grapple with dwindling gross sales.
Yerro Sowe, a vendor with over 20 years of expertise, voices his frustration: “We can go a whole day without selling anything, yet taxes keep piling up. This market is no longer the vibrant place it used to be.”
Bilal Singhateh, one other dealer, lays the blame squarely on the dalasi’s freefall. “Gambia’s economy is in tatters,” he says.
“Every 12 months, the dalasi depreciates. This has been occurring because the Jawara period.
What is the federal government doing? There is a essential scarcity of foreign exchange.”
Stalls that after thrived now stand eerily empty.
Tijan Camara, a material vendor, describes the desolation.
“Banjul Market is empty. This has never happened before. Sometimes I end up giving away materials to people in need. Taxation is killing us too.”
The Ripple Effect
The disaster’s attain extends to sellers of primary items.
Fatou Samusa, a rice vendor for 40 years, laments the sluggish tempo of her enterprise.
“I used to sell a bag of rice in two days. Now, it takes ten,” she says. “Living conditions are unbearable.”
Street distributors like Amie Joof, who sells water, are additionally struggling.
“This used to be a profitable business,” she explains. “Now, business is dull. It’s hard to make ends meet.”
Warehouse retailers face the identical harsh actuality.
Abdourahman Jallow, sitting in his Serekunda warehouse surrounded by unsold items, speaks candidly in regards to the challenges.
“The depreciation of the dalasi is crippling us. Every time I buy goods abroad, the exchange rate worsens. I can no longer afford to stock as much as I did before,” he explains. “Where I used to buy 100 gallons of oil, now I can only afford 50.”
Expert Analysis
Dr. Foday Joof, a finance specialist, gives a sobering evaluation. He attributes the dalasi’s nosedive to The Gambia’s over reliance on imports and lack of native manufacturing to stabilise the trade fee.“
We don’t manufacture our trade fee in The Gambia,” he says. “To strengthen the dalasi, we need to boost production—whether through agriculture or manufacturing.”
Dr. Joof additionally warns of the dalasi’s vulnerability to the CFA franc, urging the federal government to prioritise native manufacturing.
“The CFA will continue to appreciate unless we innovate financially and support local industries,” he cautions.
He requires daring authorities intervention, emphasising the potential of agriculture and fisheries. “The agricultural sector is key,” he says. “It’s not just about farming—our fisheries sector is grossly underutilised. We’re losing valuable opportunities there.”
Government Perspective
Despite the general public’s frustration, the Central Bank of The Gambia maintains that the international trade market stays secure.
According to the Bank, whole international foreign money transactions reached $479.4 million within the third quarter of 2024, down from $563 million within the earlier quarter.
The decline is attributed to a drop in non-public remittance inflows, which fell from $201.4 million within the second quarter to $182.5 million within the third quarter.
However, the trade fee knowledge tells a special story. Between June and September 2024, the dalasi depreciated by 0.3% in opposition to the US greenback, 3.1% in opposition to the Euro, 3.3% in opposition to the British pound, and 1.2% in opposition to the CFA franc. Rising import calls for proceed to exert strain on the foreign money.
The dalasi’s decline underscores deeper structural flaws in The Gambia’s economic system. The nation’s dependency on imports and inadequate international foreign money reserves depart it susceptible to financial shocks.
With primary requirements changing into unaffordable, Gambians are dropping religion of their authorities’s capability to steer them out of this disaster.
Traders, households, and people throughout the nation are demanding motion. They search not simply reassurances however tangible options to stabilise the dalasi and revive the economic system.
By Adama Makasuba
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