The President's Office, has in a press release issued recently, fixed the exchange rate of the US Dollar to a maximum of 37 Dalasi with effect from 26 July. Expressing concern on what it described as the unwarranted hike in the exchange rate of the Gambian Dalasi vis-a-vis international currencies, notably the US Dollar, the president's office opined that the hike is often instigated by "unscrupulous and unpatriotic individuals" bent on sabotaging the economy.

"This state of affairs is unacceptable and as such the exchange rate of the US Dollar is fixed at a maximum of D37.00 to the Dollar with immediate effect," stated the release. "Henceforth, any individual who wishes to take foreign currency out of the country must do so through the numerous banks in the country. However where it is absolutely necessary for an individual to carry cash out of the country, such must not exceed 10,000 US Dollars and must be declared at the point of exit otherwise it would be forfeited to the state if found concealed," warned the president's office in a release from state house in Banjul.

The president in an interview with the state owned GRTS Television July 26th argued that the depreciation of the Dalasi has nothing to do with the down turn of the Gambian economy and asserted that the state has knowledge of those involved in hoarding foreign currency and such persons would be pursued and prosecuted.

He also said an Operation named SWAD has been launched and will be reinforced to crack down on illegal parallel market dealers in foreign currency.

EDITOR'S NOTE

The International Monetary Fund (IMF) mission led by David Dunn at the end of their two week visit to The Gambia at a Press Conference with the Central Bank in Banjul on Monday 17 June 2013, made no secret of the uncertainty surrounding the exchange rate, citing crop production that is still well below normal, the balance of payments that has remained weakened and the Gambian dalasi that continued to face depreciation pressures.

Dunn also expressed the opinion that the Central Bank of The Gambia acted to tighten monetary policy, which he praised as having helped to stem the rate of depreciation. In the mission's view at the time, reducing Government's net domestic borrowing further during this period would be critical to ensuring confidence.

The statehouse should address the statements issued by the IMF after previous interventions which stated among other things that "the directive by the Office of the President on the exchange rate and shipments of the US dollar led to some disruptions in the foreign exchange market and created uncertainty about the Gambia's exchange rate policy" and further welcomed what it termed as " the recent lifting of the restrictions imposed by the directive and the renewed commitment to a flexible market determined exchange rate policy" The Government has declared over and over again that it is committed to the flexible market determined exchange rate policy only to intervene again to fix the rates.

What is responsible for this indecisiveness of which policy to stick to?

Foroyaa will find out.