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| CBG Governor Colley (Photo: Gambia News Online) |
The Central Bank of The Gambia, CBG, on
Monday announced it has raised by two per cent (to 12 per cent) the amount of
money that commercial banks can hold as reserve to curb rising inflation.
The CBG’s May 27 directive also noted it
would address the amount of cash commercial banks must not loan out to
customers.
The Bank’s Monetary Policy Committee, MPC,
said the higher the reserve requirement is set, the less cash banks will
have to loan out, leading to lower money in circulation.
