Best-performing Africa currency gets a boost from Gambia tourism
Gambia’s currency is poised to extend its run as Africa’s best-performing currency this year, supported by stronger remittance and tourism inflows, the nation’s central bank governor said.
The dalasi has gained 0.9% against the dollar this year, the most among 23 African currencies tracked by Bloomberg and one among three that have advanced. It’s been supported by external budget funding and disbursements under an International Monetary Fund program, Governor Buah Saidy said in an interview in Ghana’s capital, Accra, on Tuesday.
“Going forward, we expect the dalasi to appreciate slightly against major trading currencies, especially the US dollar because we see remittances growing,” Saidy said. “Our tourism season starts from October through December, so there will be inflows of foreign exchange from there as well.”
Gambia received $129.7 million from citizens living abroad in the first two months of this year, compared with $507 million in 2022, according to the most recent central bank data. Tourist arrivals surged to 174,490 last year from 102,460 a year earlier, after slumping to 89,232 in 2020 because of the Covid-19 pandemic.
The currency is also expected to be supported by peanut exports as the harvest season starts next month, Saidy said.
Consumer price inflation in Gambia accelerated a second consecutive month to 18.4% in July. Price growth will likely peak in December, before falling to less than 10% by mid-next year, he said.
Gambia is negotiating a new program with the IMF after completing a $94-million 39-month extended credit facility in June.
