The Central Bank Holds Press ConferenceAuthor: Publisher | Date: 31-08-09 | Topic: Press Release In delivering his statement at the press briefing of the monetary policy committee on 28th August 2009, the Governor of Central Bank of the Gambia Mr. Bamba Saho said there are indications that the world economy is being pulled out of recession, helped by the unprecedented macro-economic policy responses of governments. This recovery is however expected to be uneven across countries. According to the IMF’s most recent world economic outlook, growth in the global economy is expected to contract by 1.4 percent in 2009, before expanding by 2.5 percent in 2010, he said. Let us follow the rest of the release verbatim. (2.0) On the domestic front, The Gambia’s macroeconomic program is on track. In August 2009, the IMF successfully completed the fifth review of the country’s PRGF arrangement. The growth prospects of the Gambian economy are unchanged. Output is projected at 3.6 percent in 2009 compared to 6.1 percent in 2008 attributed primarily to the slow down in global economic activity. (3.0) Growth in the key monetary aggregates accelerated in the past year. Money supply grew by 18.0 percent in the year to end –July, 2009 compared to 10.1 percent a year earlier. Reserve money rose marginally by 1.8 percent compared to 6.8 percent during the same period last year. (4.0)The banking industry remained fundamentally sound, evidenced by the strong growth in assets, capital and reserves and the decrease in non-performing loans ratio. Total industry assets increases to D13.3 billion in June 2009 or 18.2 per cent from a year earlier. Advances to the private sector accounting for 29.3 percent of total assets rose to 3.9 billion, or 30.2 percent. Loans to all sectors of the economy increased with the exception of tourism. Credit to distributive trade, building and construction, transportation, agriculture, manufacturing and fisheries increased by 18.2 percent, 17.9 percent, 18.2 percent, 32.2 percent, 154.3 percent and 37.2 percent respectively from a year ago. Credit to tourism sector on the one hand, he said contracted by 17.9 percent. (5.0)The industry’s total deposits increase to 8.5 billion in June 2009, or 22.2 percent from a year ago. (6.0) Non performing loans as a ratio of gross loans improved from 8.3 percent in June 2008 to 7.0 percent in June 2009. The capital adequacy ratio was 33.2 percent in June 2009, well above the minimum threshold of 8.0 percent. All the banks met the minimum capital requirements. (7.0) End-period inflation, measured by the National Consumer Price Index ( NCP1), rose from 3.7 percent in July 2008 and peaked at 7.0 percent in February 2009 before declining to 4.1 percent in July 2009. Annual coverage inflation rate (12 months moving average), was 6.1 percent compared to 3.3 percent at end-July 2008. (8.0) Food Consumer price inflation declined to 4.3 percent in July 2009 from 5.1 percent in July 2008. In contrast, non food consumer price inflation and grants rose to3.8 percent from 2.5 percent in July 2008. Core inflation, which excludes the prices of energy and volatile food items, decreased to 3.1 percent in July 2009 from 4.9 percent during the same period last year. (9.0) Preliminary data on Government fiscal operations indicated that revenue and grants totaled 2.2 billion in the first half of 2009, higher than the 1.9 billion in the corresponding period in 2008. Total expenditure and net lending amounted to 2.4 billion; an increase of 20.4 percent compared to the first half of 2008. The overall budget balance (including grants) on commitment basis was a deficit of 197.7 million (5.9 percent of GDP) from a deficit of 86.0 million (2.9 percent of GDP) during the same period the previous year. (10.0) The domestic debt decreased to D6.0 billion (30.0 percent of GDP) in July 2009, or 3.9 percent from July 2008. Treasury bills, accounting for 83.5 percent of the total domestic debt, rose slightly by 1.7% to D5.0 billion. Distribution of treasury bills by maturity indicated that the 364- days bills accounted for 40.9% of the outstanding stock, 182- day bills 21.6% and 91-day bills 34.0% percent. (11.0) The yield on the 91-day bill, 182-day bill and 364- day bill decreased from 12.44 percent, 13.61 percent and 15.47 percent in June 2009 to 10.51 percent, 11.29 percent and 13. 51 percent respectively in July 2009. (12.0) Reflecting reduced foreign in flows, associated with the global economic and financial crisis, the volume of transactions in the inter-bank foreign exchange market contracted to 33.4 billion (US$ 1.2 billion) in the year to end July from 36.0 billion ( US$ 1.7 billion) a year ago. The quantity sold and purchased, a proxy for demand and supply, stood at 16.6 billion US$619.1Million) AND 16.8 billion US$ 626.5 million) respectively. (13.0) The Dalasi appreciated against the British Pound, US dollar and Euro by 5.0 percent, 0.6 percent and 1.3 percent respectively in the first quarter of 2009. In contrast the dalasi depreciated against the pound, US dollar and the euro by 13.0, 1.9 percent and 5.2 percent respectively in the second quarter of 2009 compared to the first quarter. (14.0) Gross official reserves of end-July 2009 stood at US$127.6 million, equivalent to 5.3 months of import of goods and services. (15.0) Outlook For the remainder of 2009, the outlook for inflation is favourable. However, the steady rise in the price of crude oil and uncertainties in the global economy are risks to the outlook. (16.0) Decision Taking the above developments into consideration, including the risks to the inflation outlook, the committee decided to maintain the rediscount rate, the policy rate, at 16.0 percent. Editors Note See next issue for Foroyaa’s analysis. This article comes from FOROYAA Online http://www.foroyaa.gm The URL for this story is: http://www.foroyaa.gm/modules/news/article.php?storyid=3259 The Central Bank Holds Press ConferenceAuthor: Publisher | Date: 31-08-09 | Topic: Press Release In delivering his statement at the press briefing of the monetary policy committee on 28th August 2009, the Governor of Central Bank of the Gambia Mr. Bamba Saho said there are indications that the world economy is being pulled out of recession, helped by the unprecedented macro-economic policy responses of governments. This recovery is however expected to be uneven across countries. According to the IMF’s most recent world economic outlook, growth in the global economy is expected to contract by 1.4 percent in 2009, before expanding by 2.5 percent in 2010, he said. Let us follow the rest of the release verbatim. (2.0) On the domestic front, The Gambia’s macroeconomic program is on track. In August 2009, the IMF successfully completed the fifth review of the country’s PRGF arrangement. The growth prospects of the Gambian economy are unchanged. Output is projected at 3.6 percent in 2009 compared to 6.1 percent in 2008 attributed primarily to the slow down in global economic activity. (3.0) Growth in the key monetary aggregates accelerated in the past year. Money supply grew by 18.0 percent in the year to end –July, 2009 compared to 10.1 percent a year earlier. Reserve money rose marginally by 1.8 percent compared to 6.8 percent during the same period last year. (4.0)The banking industry remained fundamentally sound, evidenced by the strong growth in assets, capital and reserves and the decrease in non-performing loans ratio. Total industry assets increases to D13.3 billion in June 2009 or 18.2 per cent from a year earlier. Advances to the private sector accounting for 29.3 percent of total assets rose to 3.9 billion, or 30.2 percent. Loans to all sectors of the economy increased with the exception of tourism. Credit to distributive trade, building and construction, transportation, agriculture, manufacturing and fisheries increased by 18.2 percent, 17.9 percent, 18.2 percent, 32.2 percent, 154.3 percent and 37.2 percent respectively from a year ago. Credit to tourism sector on the one hand, he said contracted by 17.9 percent. (5.0)The industry’s total deposits increase to 8.5 billion in June 2009, or 22.2 percent from a year ago. (6.0) Non performing loans as a ratio of gross loans improved from 8.3 percent in June 2008 to 7.0 percent in June 2009. The capital adequacy ratio was 33.2 percent in June 2009, well above the minimum threshold of 8.0 percent. All the banks met the minimum capital requirements. (7.0) End-period inflation, measured by the National Consumer Price Index ( NCP1), rose from 3.7 percent in July 2008 and peaked at 7.0 percent in February 2009 before declining to 4.1 percent in July 2009. Annual coverage inflation rate (12 months moving average), was 6.1 percent compared to 3.3 percent at end-July 2008. (8.0) Food Consumer price inflation declined to 4.3 percent in July 2009 from 5.1 percent in July 2008. In contrast, non food consumer price inflation and grants rose to3.8 percent from 2.5 percent in July 2008. Core inflation, which excludes the prices of energy and volatile food items, decreased to 3.1 percent in July 2009 from 4.9 percent during the same period last year. (9.0) Preliminary data on Government fiscal operations indicated that revenue and grants totaled 2.2 billion in the first half of 2009, higher than the 1.9 billion in the corresponding period in 2008. Total expenditure and net lending amounted to 2.4 billion; an increase of 20.4 percent compared to the first half of 2008. The overall budget balance (including grants) on commitment basis was a deficit of 197.7 million (5.9 percent of GDP) from a deficit of 86.0 million (2.9 percent of GDP) during the same period the previous year. (10.0) The domestic debt decreased to D6.0 billion (30.0 percent of GDP) in July 2009, or 3.9 percent from July 2008. Treasury bills, accounting for 83.5 percent of the total domestic debt, rose slightly by 1.7% to D5.0 billion. Distribution of treasury bills by maturity indicated that the 364- days bills accounted for 40.9% of the outstanding stock, 182- day bills 21.6% and 91-day bills 34.0% percent. (11.0) The yield on the 91-day bill, 182-day bill and 364- day bill decreased from 12.44 percent, 13.61 percent and 15.47 percent in June 2009 to 10.51 percent, 11.29 percent and 13. 51 percent respectively in July 2009. (12.0) Reflecting reduced foreign in flows, associated with the global economic and financial crisis, the volume of transactions in the inter-bank foreign exchange market contracted to 33.4 billion (US$ 1.2 billion) in the year to end July from 36.0 billion ( US$ 1.7 billion) a year ago. The quantity sold and purchased, a proxy for demand and supply, stood at 16.6 billion US$619.1Million) AND 16.8 billion US$ 626.5 million) respectively. (13.0) The Dalasi appreciated against the British Pound, US dollar and Euro by 5.0 percent, 0.6 percent and 1.3 percent respectively in the first quarter of 2009. In contrast the dalasi depreciated against the pound, US dollar and the euro by 13.0, 1.9 percent and 5.2 percent respectively in the second quarter of 2009 compared to the first quarter. (14.0) Gross official reserves of end-July 2009 stood at US$127.6 million, equivalent to 5.3 months of import of goods and services. (15.0) Outlook For the remainder of 2009, the outlook for inflation is favourable. However, the steady rise in the price of crude oil and uncertainties in the global economy are risks to the outlook. (16.0) Decision Taking the above developments into consideration, including the risks to the inflation outlook, the committee decided to maintain the rediscount rate, the policy rate, at 16.0 percent. Editors Note See next issue for Foroyaa’s analysis. This article comes from FOROYAA Online http://www.foroyaa.gm The URL for this story is: http://www.foroyaa.gm/modules/news/article.php?storyid=3259 The Central Bank Holds Press Conference Author: Publisher | Date: 31-08-09 | Topic: Press Release In delivering his statement at the press briefing of the monetary policy committee on 28th August 2009, the Governor of Central Bank of the Gambia Mr. Bamba Saho said there are indications that the world economy is being pulled out of recession, helped by the unprecedented macro-economic policy responses of governments. This recovery is however expected to be uneven across countries. According to the IMF’s most recent world economic outlook, growth in the global economy is expected to contract by 1.4 percent in 2009, before expanding by 2.5 percent in 2010, he said. Let us follow the rest of the release verbatim. (2.0) On the domestic front, The Gambia’s macroeconomic program is on track. In August 2009, the IMF successfully completed the fifth review of the country’s PRGF arrangement. The growth prospects of the Gambian economy are unchanged. Output is projected at 3.6 percent in 2009 compared to 6.1 percent in 2008 attributed primarily to the slow down in global economic activity. (3.0) Growth in the key monetary aggregates accelerated in the past year. Money supply grew by 18.0 percent in the year to end –July, 2009 compared to 10.1 percent a year earlier. Reserve money rose marginally by 1.8 percent compared to 6.8 percent during the same period last year. (4.0)The banking industry remained fundamentally sound, evidenced by the strong growth in assets, capital and reserves and the decrease in non-performing loans ratio. Total industry assets increases to D13.3 billion in June 2009 or 18.2 per cent from a year earlier. Advances to the private sector accounting for 29.3 percent of total assets rose to 3.9 billion, or 30.2 percent. Loans to all sectors of the economy increased with the exception of tourism. Credit to distributive trade, building and construction, transportation, agriculture, manufacturing and fisheries increased by 18.2 percent, 17.9 percent, 18.2 percent, 32.2 percent, 154.3 percent and 37.2 percent respectively from a year ago. Credit to tourism sector on the one hand, he said contracted by 17.9 percent. (5.0)The industry’s total deposits increase to 8.5 billion in June 2009, or 22.2 percent from a year ago. (6.0) Non performing loans as a ratio of gross loans improved from 8.3 percent in June 2008 to 7.0 percent in June 2009. The capital adequacy ratio was 33.2 percent in June 2009, well above the minimum threshold of 8.0 percent. All the banks met the minimum capital requirements. (7.0) End-period inflation, measured by the National Consumer Price Index ( NCP1), rose from 3.7 percent in July 2008 and peaked at 7.0 percent in February 2009 before declining to 4.1 percent in July 2009. Annual coverage inflation rate (12 months moving average), was 6.1 percent compared to 3.3 percent at end-July 2008. (8.0) Food Consumer price inflation declined to 4.3 percent in July 2009 from 5.1 percent in July 2008. In contrast, non food consumer price inflation and grants rose to3.8 percent from 2.5 percent in July 2008. Core inflation, which excludes the prices of energy and volatile food items, decreased to 3.1 percent in July 2009 from 4.9 percent during the same period last year. (9.0) Preliminary data on Government fiscal operations indicated that revenue and grants totaled 2.2 billion in the first half of 2009, higher than the 1.9 billion in the corresponding period in 2008. Total expenditure and net lending amounted to 2.4 billion; an increase of 20.4 percent compared to the first half of 2008. The overall budget balance (including grants) on commitment basis was a deficit of 197.7 million(5.9 percent of GDP) from a deficit of 86.0 million (2.9 percent of GDP) during the same period the previous year. (10.0) The domestic debt decreased to D6.0 billion (30.0 percent of GDP) in July 2009, or 3.9 percent from July 2008. Treasury bills, accounting for 83.5 percent of the total domestic debt, rose slightly by 1.7% to D5.0 billion. Distribution of treasury bills by maturity indicated that the 364- days bills accounted for 40.9% of the outstanding stock, 182- day bills 21.6% and 91-day bills 34.0% percent. (11.0) The yield on the 91-day bill, 182-day bill and 364- day bill decreased from 12.44 percent, 13.61 percent and 15.47 percent in June 2009 to 10.51 percent, 11.29 percent and 13. 51 percent respectively in July 2009. (12.0) Reflecting reduced foreign in flows, associated with the global economic and financial crisis, the volume of transactions in the inter-bank foreign exchange market contracted to 33.4 billion (US$ 1.2 billion) in the year to end July from 36.0 billion ( US$ 1.7 billion) a year ago. The quantity sold and purchased, a proxy for demand and supply, stood at 16.6 billion US$619.1Million) AND 16.8 billion US$ 626.5 million) respectively. (13.0) The Dalasi appreciated against the British Pound, US dollar and Euro by 5.0 percent, 0.6 percent and 1.3 percent respectively in the first quarter of 2009. In contrast the dalasi depreciated against the pound, US dollar and the euro by 13.0, 1.9 percent and 5.2 percent respectively in the second quarter of 2009 compared to the first quarter. (14.0) Gross official reserves of end-July 2009 stood at US$127.6 million, equivalent to 5.3 months of import of goods and services. (15.0) Outlook For the remainder of 2009, the outlook for inflation is favourable. However, the steady rise in the price of crude oil and uncertainties in the global economy are risks to the outlook. (16.0) Decision Taking the above developments into consideration, including the risks to the inflation outlook, the committee decided to maintain the rediscount rate, the policy rate, at 16.0 percent. Editors Note See next issue for Foroyaa’s analysis. This article comes from FOROYAA Online http://www.foroyaa.gm The URL for this story is: http://www.foroyaa.gm/modules/news/article.php?storyid=3259 ¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤ 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] ¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤