THE NEW CURRENCY AND ITS IMPLICATION

A new currency has been introduced. According to Section 160 of the
Constitution, the Central Bank of the Gambia shall be the onlyauthority to issue the currency of the Gambia and has the duty to
promote and maintain the stability of the currency.

It is an elementary fact of economics that if the volume of currency
in circulation far exceeds the goods and services changing hands an
inflationary spiral would be sparked. Hence it is important for the
Central Bank to issue a dead line when the old currency would be put
out of circulation.
The longer it takes to maintain both the old and new currency the
bigger the risk of oversaturation of currency in the local economy.
It is not enough just to say that old currencies which go into the
banking system would not be allowed to circulate again. What is
necessary is to fix a date for all the old currencies to be exchanged
for the new currency and for the old currency not to be accepted in
any financial transaction as legal tender.
The Central Bank should convene a Press Conference to explain how it
intends to put the new currency into circulation and remove the old
from circulation. Foroyaa is standing Vigil until there are clear
answers.