Guinea is located in central West Africa, a nation home to 9.7 million citizens. Independence was obtained in 1958 from France. Today, Guinea is facing many challenges including that of a high poverty rate at 40 percent (2003), high infant mortality rate and a modest AIDS/HIV infection rate of 3.2 percent amongst the adult population.
Economic Statistics
Total GDP as measured by purchasing power parity stands at $19 billion USD (2005) with corresponding GDP/Capita at $2,000 USD. GDP as measured by market prices stand at $3.57 billion USD (2005). GDP growth is forecasted at 5 percent for 2006 and 5.4 percent for 2007. Other GDP growth quotes include year 2005 at 3 percent, 2004 at 2.7 percent, 1999 at 3.7 percent. Inflation is estimated at 24 percent for 2006. Other inflation quotes include year 2005 at 31 percent, 2004 at 17.5 percent, 2003 at 13 percent, year 2002 at 3 percent, year 2000 at 4 percent. The current account is in deficit at 4.6 percent of GDP (2005) with the trade component in shortfall at $88 million USD. The fiscal account is in deficit at $285 million USD (2005). Low international reserves at $70 million USD equivalent (2005) or 1.3 months of import coverage. No oil and gas production, self-sufficient in electricity production.
CURRENCY: ISO Symbol ‘GNF’, Guinean franc, franc. At time of review on July 14, 2006, the Guinean franc had an exchange value of 5006.7 GNF to the US-dollar (USD) and/or 6342.5 GNF to the Euroland euro (EUR). Currency regime follows that of a managed float since November 1994. The franc has experienced significant currency devaluation over the last couple of years down close to 100 percent (that is from approximately 2500 to 5000 GNF to the USD). The defacto exchange peg to the USD during 2004-05 resulted in an overvaluation of the franc to the USD, hence the price value adjustment in the franc to correct the macro imbalances.
CURRENCY HISTORY: the original Guinean franc came into circulation in 1959 when it replaced the CFA franc. The original Guinean franc lasted as currency until 1971 when the ‘syli’ replaced the franc at an exchange value of 10 francs to 1 syli. In 1985, the Guinean franc returned as national currency when it replaced the ‘syli’ at par. Historical exchange quotes include year 2005 at 2550 GNF to the USD, year 2004 at 2225, 2003 at 1984, year 2002 at 1975, 2001 at 1950, 2000 at 1746, 1999 at 1387, 1998 at 1236, 1997 at 1004, 1995 at 991, 1994 at 976, 1993 at 955 and 1992 at 902.
CURRENCY FORECAST: significant mineral reserves (bauxite, gold, diamonds), hydropower and agricultural resources. Today, Guinea is the world’s number two producer of bauxite as it holds 50 percent of global bauxite reserves. Other currency risks include regional conflicts, external debt levels, moderate to high inflation, etc.
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