Gambian Dalasi In Crisis While On The Verge of Being Rejected The Independent (Banjul) January 2, 2001 Banjul The Gambian currency the dalasi has fallen sharply against other foreign currencies in recent months, prompting several businessmen in the country to prefer using other currencies in their business transactions. The situation is said to be felt more in the rural areas. Inhabitants in the border villages of North Bank Division said they have been alarmed by the dalasi's downward spiral whose value they said continue to drop. At the end of June last year, the Gambian currency was D11.32 to the US dollar and D18.06 to the British pound. It experienced some further drops in the last quarter of 1999 - a trend which continued into 2000. Towards the close of this year the dollar and the pound rose up further, exchanging at D14.35 and D21.09 respectively. Other currencies like the French Fanc and the CFA have also rallied significantly against the local currency. In the black market the picture doesn't seem to be assuring either. One dollar is equivalent to D15 while one pound is exchanged at D22. CFA500 make up for D10 while the French Franc is at D201. Local businessmen have expressed disquiet that the Dalasi is in danger of being rejected by foreign businessmen wanting to invest in the country but found its depreciating value a disincentive. In a round-up tour of the border villages in the North Bank Division, people there told The Independent that they have observed with "helpless shame" as the CFA Franc was being preferred to the dalasi. They asserted that on several occasions, businessmen especially foreigners rejected the Gambian currency in favour of the CFA Franc. They revealed that this happened particularly during weekly market days (lumos). Those who preferred other currencies said they were driven towards those currencies by the "ailing and declining" Dalasi. A middle-aged businesswoman who wished to remain anonymous claimed that many counterfeit versions of the Dalasi have swarmed the market, dampening confidence to deal with the local currency. Alhagie Amadou Sargh a resident of Tawa in Lower Baddibu told The Independent that a Mauritanian businessman in their village caused a stir when he refused to accept the Dalasi in exchange for items he was selling. Mr. Sargh said he made an inquiry of whether it was proper to reject the dalasi within Gambian territory but was "advised to report the matter to the police at Kerewan". According to Sargh the only currency the Mauritanian businessman accepted was the CFA Franc. Amat Joof a resident of Dimbuga said the rejection of the Dalasi in their area has brought serious difficulties to the people who depend on it to bargain for food and other essential items. He claimed that most of the rejections were from Mauritanian businessmen in the area. He pointed out that his daughter-in-law nearly fought with a businessman after he rejected her local currency notes. A middle-aged man who also preferred anonymity asserted that the Dalasi's rejection could not at this stage remain unnoticed by the police. "I blame the Alkalolu and the police, who are aware of the situation" he noted. "The police should be brought to the picture" he suggested. "If this trend should continue into the next year our currency would just be a trash" said another businessman who trades between the urban and rural areas. The Kerewan police could not be reached for comment. However, an insider at the Central Bank confirmed that the Dalasi is in more trouble of a downward slide and acknowledged that it is faring badly against the CFA Franc. Although he said he did not know the reason for the currency's decline, but he would not rule out instances of counterfeiting as one cause. ---------------------------------------------------------------------------- To unsubscribe/subscribe or view archives of postings, go to the Gambia-L Web interface at: http://maelstrom.stjohns.edu/archives/gambia-l.html You may also send subscription requests to [log in to unmask] if you have problems accessing the web interface and remember to write your full name and e-mail address. ----------------------------------------------------------------------------