3-yr Bond Under-subscribed
The 3-yr fixed coupon bond which was introduced on 24th February 2010 was undersubscribed by 50 per cent. Only D25million of the D50million floated was taken up by investors.
All other instruments on the money market were massively over-subscribed at this week’s auction. The 91-day bill was over-subscribed by 80 per cent, loosing 65bps and was quoted at 10 per cent. Its counterpart – the 91-day (S/S) was quoted at 10.47% having lost 3bps on the previous week’s price.
The bill was over-subscribed by 190.25 per cent. The 182-day bill and the 1-year bond were quoted at 11.00 per cent and 12.90 per cent respectively having lost 61bps and 9bps respectively on the previous week’s prices.
Currency Market Updates
On the Interbank, the Dalasi gained 70bututs against the pound sterling and was quoted at D41.75. Against the Euro, it was quoted at D36.30, a gain of 25bututs. It remained unchanged against the CFA franc but lost 35bututs against the dollar to end the week at D27.15.
On the parallel currency market, the Dalasi remained unchanged against the dollar and the pound sterling. It gained 162butus and 750butus against the Euro and CFA franc respectively.
Dalasi Interbank Mid Exchange Rates
Dollar 27.15
Pound 41.75
Euro 36.30
CFA 285.00
Parallel Mid Exchange Rates
Dollar 26.75
Pound 42.50
Euro 37.38
CFA 272.50
The Monetary Policy Committee of the Central Bank of The Gambia (MPC) released a press statement on 24th February 2010. The MPC maintained the Rediscount rate at 14 per cent.
The Committee expects economic activity to evolve during the year supported by the expected partial recovery in tourism and remittances, and robust growth in agriculture. The statement also disclosed that at the end of January 2010, gross international reserves totalled US$183.30m, equivalent to 7.2months of import cover.
End-period inflation measured by the National Consumer Price Index (NCPI) has been rising from 2.4 per cent in September 2009, to 2.7 per cent in December 2009 to 3.6% in January 2010. However, annual average inflation fell to 4.3 per cent in January 2010 compared to 5.6 per cent in September 2009.
