The governor of the Central Bank Mr. Buah Saidy
By Ramatoulie Jawo
The Gambia’s domestic debt stock increased by 6.1 percent to D43.8 billion in 2024, up from D41.3 billion recorded in December 2023, according to Governor Buah Saidy of the Central Bank of the Gambia.
Governor Saidy revealed this during the Central Bank’s Monetary Policy Committee’s final quarterly review on Tuesday. The review assessed domestic and global economic trends for 2024 at the bank’s headquarters in Banjul.
“The stock of domestic debt rose by 6.1 percent to D43.8 billion, 25 percent of GDP in September 2024, from D41.3 billion 28.2 percent of GDP in December 2023. Short term government securities with maturity of one year or less accounted for 47.9 percent of the total domestic debt stock. The weighted average treasury bill rate increased from 10.4 percent in June 2024 to 11.8 percent in October 2024,” he said
He highlighted that preliminary estimates for the balance of payments indicate a moderation in the current account deficit during the first nine months of 2024, which narrowed to US$59.9 million (2.8% of GDP) compared to US$129.3 million (5.9% of GDP) in the same period last year.
He noted that the interbank Dalasi market continues to operate smoothly with robust trading activity. Total trade volumes amounted to D10.2 billion in September 2024, slightly below the D13.8 billion recorded in December 2023.
He also pointed out a decline in the weighted average interest rate in the interbank market, which fell from 9.1% in 2023 to 5.5% in September 2024, reflecting the trend in the three-month Treasury bills rate.The banking sector, Governor Saidy emphasized, remains well-capitalized and liquid. The risk-weighted capital adequacy ratio increased to 24.9 percent in September 2024 from 24.1 percent in June 2024, while the liquidity ratio rose to 81.8 percent from 77.2 percent over the same period.
“The industry continues to be adequately capitalized and liquid. The aggregate risk weighted capital adequacy ratio stood at 24.9 percent in September 2024 slightly higher than the 24.1 percent recorded in June 2024. In the same vein, the liquidity ratio of the industry increased, from 77.2 percent in June 2024 to 81.8 percent in September 2024.” he said
However, the Governor highlighted a concerning rise in non-performing loans, which climbed to 16.6 percent in September 2024, up from 10.2 percent in June 2024.
In the monetary sector, annual money supply growth accelerated to 14.4 percent in September 2024, compared to 6.6 percent in the same period in 2023. This growth reflects increased net foreign assets of depository corporations, driven by improved foreign currency liquidity.
Governor Saidy also addressed inflation trends, noting that headline inflation edged up slightly over the past three months. Inflation stood at 10.0 percent in October 2024, consistent with September but higher than the 9.8 percent recorded in August. Despite this uptick, forecasts suggest a return to single-digit inflation by the first quarter of 2025, assuming stability in international commodity prices.
Looking ahead, the Monetary Policy Committee expressed optimism about the Gambia’s economic recovery, which continues to strengthen with a favorable medium-term outlook. Key growth drivers include public infrastructure projects, private construction activities, a recovering tourism sector, and remittance inflows, which are expected to support economic growth over the next two years.