Gambia’s forex market stable as reserves, remittances strengthen – Central Bank

By Haddy Touray

The Gambia’s foreign exchange market remained stable during the first nine months of 2025, with total foreign currency purchases and sales rising to US$2.4 billion, up from US$2.1 billion over the same period in 2024, the Central Bank of The Gambia said Thursday.

Central Bank Governor Buah Saidy said the improvement reflected stronger foreign exchange supply conditions, driven largely by private remittance inflows, which reached US$638.4 million between January and September. The United States accounted for 24.3 percent of these inflows.

The dalasi held broadly steady during the period. Between June and September, it appreciated by 0.1 percent against the US dollar but depreciated by 4.3 percent against the euro, 1.0 percent against the British pound, and 2.6 percent against the CFA franc.

Saidy reported that external buffers remained strong, with gross international reserves standing at US$493.11 million at end-October—sufficient to cover 4.4 months of projected imports of goods and services.

He said preliminary fiscal data for the first half of 2025 showed an improved budget position compared to the previous year. The overall deficit, including grants, narrowed to D6.0 billion (5.0% of GDP) from D8.6 billion (6.1% of GDP) in 2024, supported by stronger domestic revenue mobilisation and improved tax administration.

However, the deficit excluding grants widened by 1.8 percent, rising from D15.2 billion (10.8% of GDP) in the first nine months of 2024 to D15.5 billion (11.0% of GDP) over the same period of 2025.

Domestic debt rose to D50.1 billion (28.7% of GDP) in October 2025, up from D46.4 billion (28.5% of GDP) at end-2024. Medium- and long-term instruments expanded to 47.8 percent of the portfolio, though short-term securities remained dominant at 52.2 percent.

Broad money growth accelerated to 16.4 percent in September from 14.4 percent a year earlier, driven by stronger net domestic assets. Credit to the private sector grew 9.4 percent, compared to 1.9 percent last year. Reserve money rose by 12.5 percent, reversing the 0.3 percent contraction recorded in 2024.

The Governor said the banking sector remained stable and resilient, with total assets rising to D116.8 billion (71.3% of GDP) in September from D104.5 billion (72.1% of GDP) a year earlier. Deposits increased by 15.6 percent year-on-year to D76.4 billion (46.5% of GDP).

Capital adequacy indicators also strengthened. The risk-weighted capital adequacy ratio rose to 25.1 percent in September, up from 24.9 percent last year, driven by higher paid-up capital and retained earnings. The liquidity ratio eased slightly to 80.3 percent from 81.8 percent, while the loan-to-deposit ratio declined to 22.6 percent from 25.2 percent.

Fintech and mobile money operators recorded 4.3 million registered users at end-September, down from 4.5 million in June. Active users stood at 2.1 million, representing 49 percent of accounts. Cash-in transactions increased by 0.9 percent to D20.5 billion, while cash-out transactions rose by 3.6 percent to D21.6 billion.

Saidy said inflationary pressures continued to ease, with headline inflation dropping to 7.0 percent in October from 7.4 percent in September—marking eight consecutive months of single-digit inflation. Food inflation fell to 7.4 percent, reflecting lower prices for bread and cereals, fish, dairy products, oils and fats, and other processed foods. Non-food inflation moderated to 6.2 percent, supported by lower housing and utilities costs. Core inflation declined to 4.5 percent from 5.3 percent in September.

The Central Bank’s Monetary Policy Committee (MPC) said the global economic outlook for 2025 has softened, with growth still below pre-pandemic levels despite easing global inflation. Many emerging and developing economies have begun cutting interest rates as inflation stabilises.

“Global commodity prices remain subdued, reinforcing the disinflation trend and reducing imported inflation for The Gambia. Domestic conditions remain favourable, supported by strong remittances, a recovering tourism sector and sustained investment activity. The foreign exchange market remains orderly and the dalasi stable,” Saidy said.

The MPC said its latest policy decision reflects the continued decline in inflation and the resilience of domestic growth. The Committee expects inflation to keep easing and said the rate cut aims to boost private-sector lending, support investment, and sustain economic expansion while safeguarding price stability.

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 By Haddy Touray The Gambia’s foreign exchange market remained stable during the first nine months of 2025, with total foreign…
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