Economic outlook remains positive but....
The Monetary Policy Committee of the Central Bank of The Gambia in a press release on 3rd June 2010 maintained the rediscount rate at 14.0 percent. The committee stated that the outlook of The Gambian economy for the remainder of 2010 remains positive and that although inflation has began to pick up slightly, it was expected to remain in single digits. As at the end of April 2010, gross international reserves including the SDR allocations stood at US$177.63million equivalent to 7months of import cover.
Dollar Breaks Through
The Dalasi continued to depreciate in the Parallel Market although it surprisingly strengthened in the Interbank Market. In the parallel market this week, the Dalasi depreciated by 100bututs against the Dollar and was quoted at D30.50. It depreciated by 125bututs against the Pound to D43.25 and lost 50bututs to the Euro. In the Interbank Market the local currency appreciated by 188bututs against the Dollar to D27.00, up 275bututs against the Pound to D39.75 and up 75bututs against the Euro to D35.25.
Dalasi Interbank Mid Exchange Rates
Dollar 27.00
Pound 39.75
Euro 35.25
CFA 285
Parallel Mid Exchange Rates
Dollar 30.50
Pound 43.25
Euro 37.50
CFA 280
91-day (SS) yield unchanged
Yield on the 91day (SS) remained unchanged at 10.41% whilst the yields on all the other instruments in the money market declined when compared to last week’s close. The 91-day bill declined by 26bps to 9.19%. The 182-day bill was down 47bps to 10.24%. The 1-year note was down 21bps to 13%. For the first time in a couple of years we have an inverted yield curve with the yield on the 91-day (SS) being higher than that of the 182-day bill. The yield on the benchmark 91-day bill is touching lows not seen since the second half of year 2008. The amount on offer at next week’s tender is D150million (D55million
