Banks And Local Money Exchange Bureaus Rendered “Ghost Offices.”

Money Changers Defy Jammeh’s Decree to regulate Foreign Currencies

There is a major scarcity of foreign exchange in The Gambia, as local money changers have embarked on hoarding their monies, in retaliation to President Yahya Jammeh’s decree to determine the value of major international currencies, such as the mighty dollar and the pounds sterling, the Freedom Newspaper can authoritatively report. Almost all major banks across the country had been affected by this protest action. Bank officials at the Trust Bank, the Guarantee Bank and the First International Bank who spoke to this paper on condition of anonymity lamented about President Jammeh’s recent move to regulate international currencies value. “ As you can see, there is no serious banking activity taking place here. Our Foreign Exchange Department has been rendered bankrupt by the President’s move. Most of our clients (money changers) have stopped coming here. They refused to trade their foreign exchange at loss. This bank lacks foreign exchange. With the Hajj just round the corner, many people are finding it difficult to have access to foreign exchange. The dollar and the pound are hard to come by. They are no where to be seen. This is a scary development. When you have a retarded President, such a thing is bound to happen. The Central Bank, which is expected to provide the Government with accurate information about economic issues are hell bent on distorting the economic realities of this country. The economy is not moving. This is the reality on the ground.” said a Bank official.

The money changers mainly from Guinea Conakry have vowed not to sell their foreign exchange at a loss. In what appeared to be a unified move to oppose President Jammeh’s forced way of bringing inflation down, the money changers have since stopped marketing their foreign currencies. The move they said, was intended to prove to Gambians and the world at large that the Gambian leader was shamelessly exploiting them by trying to use their hard earned foreign exchange to run his projects. In the absence of Foreign Exchange said the money changers, the Banks will not operate effectively. “ About 80 percent of the funds derived by these banks emanated from us. We work hand in hand. I can bet that if this strike continues, this Government will cease to operate. Importers will cease to import rice and other commodities. We own our money and would not allow undue exploitation from the state. No threats can make us sell our Foreign Exchange at loss. They own the Central Bank, but we also own our money. We have unanimously agreed not to sell our foreign exchange at loss. They either adhere to the international monetary regulation standards, or else we hold our money. Close to Half million dollars are currently hoarded, as we speak. The President can’t do shit on this action. We rather go to Senegal and sell Foreign Exchange than to sell it here in The Gambia.” said a local money changer.

Just this past week, the Gambian leader issued an ultimatum, in which he threatened to deal with money changers who refused to comply with his recent decree to bring foreign exchange values down. Mr.Jammeh told the nation that God willing he would bring the value of the dollar to D4 dallasi, which is less than five US dollars.

Gambians in the Diaspora are at the receiving end. They have to work extra hours just to meet their bills and other family commitments in The Gambia. For instance, if they used to send $200 dollars to their families, with the recent depreciation of the dollar, they have no choice but to send nothing less than $400 hundred dollars. While the dollar is being traditionally devalued in The Gambia, prices of basic commodities are skyrocketing by the day. Rice, which is the nation’s main staple food is out of reach. Many families struggled to feed their loved ones.

Money Gram !

Gambians overseas normally used Money Gram or Western Union to wire funds to their families. Each time they wired monies, local Money Gram agents gave them the amount of money the recipients were supposed to get at the end of the day. To the surprise of many, the amount stated on their wired funds, does not tally with what local agents in The Gambia, pay to their loved ones.

The Freedom Newspaper has been following the story for sometime now. Our findings revealed that the scam emanated from Banjul, where the authorities tried to force local agents to adhere to newly set up currency values. “ We are aware of the complaints forwarded by our customers. The problem is not from here but in The Gambia. Our agents usually go by the currency rate in The Gambia.” said a source close to Money Gram.

Speaking to our reporter, an official of the Central Bank of The Gambia remarked” The directive to devalue the dollar came from the President. What the Money Gram and Western Union Customers fail to realize is that, what obtain in the US, don’t obtain here. Be it Money Gram or Western Union operate inline with our currency rate. Each time, we change the value of the dollar, their customers are bound to complain. We can peg the dollar at D18 dalasis today, before close of business, the President can say let bring it to D17 dalasis. He calls us on a daily basis to give directive about what needs to be done to bring the dollar down. There is nothing these customers can do to remedy the situation. The President have the final say. We go by what he tells us.” said a senior official at the Central Bank Economic Research Unit.

According to the official, many Money Gram and Western Union outlets in the country are faced with a lot of complaints these days. “ The price given abroad, don’t match with what obtains here. This is attributable to the unstable currency values. We kept on changing currency values. We feel sorry for Gambians overseas, but there is nothing we can do to remedy the situation. All directives come from the President.” added the Bank official.

Import Cover Declining!

As economic uncertainties gripped the nation, the country’s import cover has fallen drastically in recent months. A good number of importers have ceased to import goods into this country. They lamented about lack of conducive business climate in the country. “How can we import goods when the Government is meddling into affairs of the private sector. They want to determine the prices of commodities and at the same time they said this is a liberal economy. How can the economy be liberal when businessmen are not free to operate independently. There is no liberal market in The Gambia. What we have is slavery. Investors are being threatened on a daily basis by the Government. You either dance to their tune or suffer the consequences. Under the circumstances, it’s unsafe to order goods. Our business security is not assured at all.” said an importer in Banjul.

Another businessman remarked” The recent foreign exchange hoarding had really paralyzed our business. In the absence of foreign exchange, we cannot order goods. The Government needs to engage the money changers into dialogue and find a lasting solution into this problem. Failure of which, there is bound to be starvation in this country. I for one will not import goods under such business climate. I’m just waiting on my rice consignment to finish before I move my business to Dakar. The business prospects in The Gambia is gloomy. It’s very risky to invest in this country.” said the prominent businessman.

Sources close to The Gambia Ports Authority have also confirmed the drop in import cover in recent times. These sources lamented about the lack of cargo at the seaports. “This Ports has been reduced to a ghost Ports. From January to date, we received few vessels. There is little activity taking place here. If the current trend continues, many businesses would close down. This is not the GPA we use to know back in Jawara’s Government. Many countries on the sub-region used our Ports to transit their goods. But today, the Ports has been reduced to a graveyard. No serious activity is taking place here.” said a GPA official.

According to the official, the GPA this year could not meet its annual financial obligation to the Government. “ We are running at a loss. For the first time in the history of the GPA, we could not meet our annual financial obligation to the Government. This is attributable to a poor management. Our MD is another dummy who knows nothing about Maritime. He is a square peg in a round hole. He is a liability to the GPA. Most of budget is being spent on useless projects.” he added.

 

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