Gambia is a small country located in West Africa, total population is only 1.65 million. Independence was obtained in 1965 from the United Kingdom. The economy mainstay consists of foreign aid, re-export trade, livestock, fishing and agriculture (ie. groundnuts, nuts, peanuts).
Economic Statistics
Total GDP as measured by purchasing power parity stands at $3 billion USD (2005). Market GDP stands at $430 million USD (2005). GDP growth rate came in at 5.5 percent for 2005, 2006 is estimated at 4.5 percent and 2007 at 5 percent. Inflation quotes include year 2000 at 3.4 percent, 2005 at 9 percent and is forecasted to fall drastically to 4 percent for 2006 and to 3.7 percent for 2007. The current account is in deficit at $20 million USD (2005), year 2000 shortfall at 10.25 percent of GDP. The trade component is in deficit at $57 million USD (2005). External debt is high at $629 million USD (2003). International reserves stand at $81.5 million USD equivalent (2005), it is projected to increase by upwards of 20 percent during 2006. Interest rates had the 91-day Treasury note at 13 percent (July 2006). No oil & gas production, self-sufficient in electricity.
CURRENCY: ISO Symbol ‘GMD’, Gambian dalasi. At time of review on July 10, 2006, the Gambian dalasi had an exchange value of 28.3 GMD to the US-dollar (USD) and or 35.76 GMD to the Euroland euro (EUR). The currency regime in place is that of a floating exchange rate.
CURRENCY HISTORY: the Dalasi came into circulation in July 1971 when it replaced the then Gambian pound at an exchange rate of 5 dalasi to 1 pound. From 1972-86, the dalasi was pegged to the British pound sterling at a rate of 4 GMD to 1 GBP. Since 1986, the dalasi was unpegged to pound sterling where it has then free floated. Historical exchange quotes include year 2005 at 30.38 GMD to the USD, 2004 at 30.03, year 2003 at 27.3, 2002 at 19.9, 2001 at 15.68, year 2000 at 15.68, 1998 at 14.4, 1997 at 10.2, year 1996 at 9.8, 1995 at 9.54, 1994 at 9.57 and 1993 at 9.12.
CURRENCY FORECAST: vulnerable, history of instability. Regional currency risk as noticed with the 1994 devaluation of the CFA franc in neighboring Senegal. Other currency risk impacting Gambia include high oil/energy costs, Gambia being an illegal drug transshipment centre which is interfering with legalized cocoa exports, etc. Conversely, positive sentiments are related to increase foreign direct investment, tourism, agricultural exports and remittances to help the nation struggling with high unemployment.
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