FACTSHEET: Gambian Currency Depreciates against CFA by 59% in 9 Years

By Mustapha K. Darboe

One of the trending news in the Gambia recently has been the depreciation of the country’s currency against the CFA, the currency of its immediate neighbour, Senegal. Senegal, is a member of the CFA franc zone— an economic and monetary area that brings together 14 countries in West and Central Africa.

The Franc used in West Africa, is known as the West African CFA franc (XOF) which is mainly used by Gambian traders and travellers and is widely available for exchange in our financial market.

The West African Franc is used by eight independent states in West Africa which make up the West African Economic and Monetary Union: Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo.

Gambia is an import dependent economy. The last few years has seen an increasing dependence on Senegal for many things including import into the country through the Ports in Dakar. This dependence puts pressure on the dalasi causing its depreciation against the CFA.

A 9 year of decline

In the last 9 years, according to the data gathered by the Gambia Bureau of Statistic and Central Bank of the Gambia, the Gambian dalasi has depreciated against the CFA by at least 59%.

The biggest decline in the value of dalasis against CFA— 36% —was seen between 2018 and January 2022. The following are the key rates from 2016 to 2024:

• In January 2016, the Gambia dalasi per 5000 Franc CFA was at D348
• In January 2018, the Gambian dalasi per 5000 Franc CFA was D410.8
• In January 2022, the Gambian dalasi per 5000 Franc CFA was D556.86
• In December 2023, the Gambian dalasi per 5000 Franc CFA was D518
• In January 2024, the Gambian dalasi per 5000 Franc CFA was D527
• In September 2024, the Gambian dalasi per 5000 CFA Franc was 544.87

What drives Dalasi’s depreciation against CFA

The experts have blamed several factors for the depreciation of the dalasi against the CFA. They include:

• The governor of the Central Bank of The Gambia (CBG)— Buah Saidy— blames trade imbalance as the main driver.
• Experts also identified Gambia’s dependence on the Dakar Ports for the importation of goods into the country as one of the main drivers of Dalasi’s depreciation against the CFA.
• In July, 2024, the lawmaker for Upper Saloum— Alagie Mbowe— blamed the depreciation of the Dalasi, partly, on the poor regulations of the foreign market by the CBG.