IMF: NAWEC leads spending pressures in Gambia

“Public debt, which stood at more than 80 percent of Gross Domestic Product (GDP) at the end of 2013, is projected to exceed 90 percent of GDP by the end of this year. The burden of government borrowing will exert further pressure on inflation, international reserves, and the exchange rate," IMF says.

SENEGAL: GDP Weaker Than Forecast

President Sall is presiding over low agricultural production in Senegal (Photo Credit: Getty Images)

Early estimates by the authorities [in Senegal] suggest that Gross Domestic Product (GDP) growth was weaker than forecast in 2013, about 3.5 per cent compared to the expected 4 per cent. 

This is indicative of low levels of production in the agricultural sector, difficulties in the industrial sector and in the extractive industries, says an International Monetary Fund, IMF, mission which visited Senegal from April 16-30, 2014 to conduct the seventh review under the three-year Policy Support Instrument (PSI) approved in December 2010. 

In contrast, activity was particularly buoyant in the telecommunications and construction sectors. Inflation stood at 0.7 percent on average in 2013 amid softer agricultural commodity prices in the international market. 

IMF says CBG stem dalasi depreciation

But, concerns have been raised about the rate at which the dalasi is dwindling in value against major currencies like the US Dollar and the British Pound

CBG must play role on exchange rate policy

In October 2012, President Yahya Jammeh forced exchange rate down in a directive against "hoarding" but the IMF did not recognise such mandate as the Central Bank of The Gambia is responsible of regulating the financial market (Photo credit: Wikipedia)

For full confidence to return to the financial market of The Gambia, the Central Bank of The Gambia (CBG), which is responsible for exchange rate policy, must continues to implement this policy framework, according to the IMF.

An International Monetary Fund (IMF) mission to the country led by Mr. David Dunn revealed that the recent directive by the Office of President Yahya Jammeh on the exchange rate and shipments of U.S. dollars led to some “disruptions” in the foreign exchange market and created “uncertainty” about The Gambia’s exchange rate policy.

Risk to global financial stability have increased: IMF

In its latest assessment of the global financial sector, the International Monetary Fund, IMF says the risks to global financial stability have increased and financial markets have been volatile as European policymakers grapple with the ongoing crisis. 

Faltering market confidence has led to capital flight from countries on the ‘periphery’ to the core of the euro area. 

GLOBAL FINANCIAL STABILITY REPORT: IMF

IMF’s Viñals addresses reporters during Tokyo news conference: ‘Further policy efforts are needed to gain lasting stability’ (IMF photo)

Mounting Risks, Euro Area Worries Fuel Financial Instability

IMF Survey online

October 10, 2012

• Confidence remains fragile despite recent policy actions
• Euro area crisis principal risk amid internal capital flight
• Emerging markets susceptible to shocks from Europe; United States and Japan need to address fiscal challenges
• Policymakers must act swiftly to restore confidence