DALASI& BUTUT: Dalasi Strengthens against US Dollar

The local currency strengthened against the greenback on both the interbank and the parallel markets this week. On the interbank market, the local currency gained 12 bututs and was quoted at D26.53 and improved by 25 bututs against the Pound to close at D39.

The Dalasi however depreciated by 25 bututs to D35.15 against the Euro while losing ground by 5 bututs to close at D262.50. On the parallel market, the Dalasi appreciated by 50 bututs against the Dollar to D25.88 and was stable at D38 against the Pound. The local currency however depreciated by 40 bututs against the Euro and was down by D7.50 against the CFA Francs and was quoted at D35.10 and D257.50 respectively.

The dollar fell broadly against the Euro and the Pound but strengthened against the Yen on the international currency markets. Analysts said that losses in the dollar were also being driven by investors pulling out of U.S. government debt, which has pushed the 10-year U.S. Treasury yield to its highest level since late November. The dollar was little changed against the yen at 97.62 yen as traders dumped safe-haven positions taken out earlier in the week, when uncertainty over the possible impact
of swine flu had sparked higher risk aversion.
Dalasi Inter-Bank Mid Exchange Rates

USD 26.53
UKP 39.00
Euro 35.15
CFA 262.50
Dalasi Forex Bureau Mid Exchange Rates

USD 25.88
UKP 38.00
Euro 35.10
CFA 257.50

Instruments Gain; S/S Dips
All traded instruments on the money market of the Central Bank of the Gambia marked registered gains except for the Sukuk-Salam Bill which dipped by a basis point from 12.07 per cent to 12.06 per cent.

The 91- Day Bill soared by 32 basis points and was quoted at 12.36 per cent after
being quoted at 12.04 per cent last week. The 182-Day Bill climbed up by 44 basis points from a previously quoted level of 12.96 per cent and was quoted at 13.40 per cent. The longer section of the market witnessed an 8 basis point increase in the 1-Year Note. The Note is currently quoted at 14.68 per cent but was quoted at 14.60 per cent last week.