By Fatou Sillah
The Central Bank of The Gambia (CBG) has announced that the domestic foreign exchange market remains stable, with total transaction volumes reaching US$1.3 billion in the first half of 2025.
Governor Buah Saidy made the disclosure on Tuesday while briefing the press following the 95th meeting of the Monetary Policy Committee (MPC). He noted that activity volumes, measured by aggregate purchases and sales of foreign currency, rose by 8.3 percent compared to the same period last year.
“Total activity volumes measured by aggregate purchases and sales of foreign currency amounted to US$1.3 billion in the first half of 2025, which was 8.3 percent higher than what was recorded in the corresponding period a year ago,” the Governor said.
He attributed the growth largely to private remittance inflows, which totaled US$426 million between January and June 2025, representing a 4.9 percent year-on-year increase. Improved income from the tourism sector also contributed to the rise in foreign currency liquidity.
“A rise in income from tourism was also a contributor to the improvement in foreign currency liquidity,” he said.
Governor Saidy highlighted that the forex market’s performance is reflective of broader economic progress. He reported that The Gambia’s economy grew by 5.3 percent in 2024, driven by trade, construction, mining, and financial services, with growth projected to accelerate to 6.4 percent in 2025.
Despite the positive outlook, he cautioned that external risks—such as global trade fragmentation, commodity price volatility, and climate-related shocks to agriculture—pose challenges to the near-term outlook.
According to the Governor, the Central Bank’s latest Business Sentiment Survey shows rising optimism among firms, with most expecting gradual improvements in economic activity over the next quarter. While inflation expectations remain high, he noted, they continue to trend downward.
“The Central Bank’s latest Business Sentiment Survey indicates a rise in optimism among respondents. The majority of firms anticipate a gradual improvement in economic activity over the next quarter. While inflation expectations remain elevated, they have continued to trend downward, reflecting an improving outlook,” he said.
On external balances, the Governor revealed that the current account deficit widened to US$36.9 million (1.5 percent of GDP) in the first half of 2025, up from US$25.1 million (1.1 percent of GDP) in the same period of 2024. The goods account deficit also expanded to US$488 million (20.3 percent of GDP), compared to US$474.4 million (20.2 percent of GDP) a year earlier.
Total imports of goods grew by 11.3 percent, reaching US$697.7 million, mainly driven by electricity, fuel, construction materials, and food imports. Meanwhile, total exports recorded a 37.3 percent increase, rising to US$209.7 million in the first half of 2025.