Market beat: The dalasi update
Tuesday, November 25, 2008
The Dalasi is back to trading this week with very little changes from a fortnight ago and that is something positive.
However, we anticipated that two recent world events, one local and one international would have swung the pendulum on our side thereby strengthening the Dalasi and giving us an advantage in our purchasing power.
The crude oil barrel back to $50
This is a major development from three months ago when the price of a crude oil barrel hit an all century high at a staggering $147 per barrel. With the western financial turmoil and the decreasing in spending at state and personal level the dropping in the price of crude oil could not come at a better time.
The same will go for the amount of aids and donor money we will receive and in that vein, MARKET BEAT hoped that the falling oil price will therefore strengthen our Dalasi further. The demand for international currencies will fall with this development as we will need less hard currency to buy oil and so when the demand falls then the Dalasi should get stronger.
I hope this will be the scenario in the weeks ahead. If you hold large deposit of foreign currency it is the right time to dispose of them before you end up with less Dalasi for them in the weeks ahead.
Early November harvest
With the early harvest making its way into our local markets and communities, Gambians have started enjoying the fruit of their labour and those in the city have started enjoying the new crops. One like Saikou Sanneh of SSHFC did have a good go of the freshly harvested peanuts from Chamen Kerr Bai Dam and he told me it is like heavenly apples.
The entrance of early harvest into our markets will cushion our demand for more rice as rural Gambia will have an alternative or alternate diet in coos and corn to play with the imported rice. The demand for rice will fall and that means demand for foreign currency will equally fall thereby strengthening the Dalasi. We therefore look forward to weeks and months ahead where the Dalasi will do very well and consolidate grounds against major world currencies.
AGIB, ICBG and BSIC are the banks this week to register almost all losses in all currencies at trading from our last two weeks trading figures.
Trust Bank Ltd and FIB are the only non movers this week and please do keep it up.
ECOBANK registered gains in all but one of its currencies this week while GTB made two gains and two non movers this week.
SCBG, PHB, ACCESS are the banks that are posting a mixed picture with some gains, some losses and some non movers in their respective currency dealings this week. In that connection, Market Beat has the privilege to bring to you the INDICATIVE RATES currency tables as we buy and sell in a selection of our major banks as dictated by the Central Bank of the Gambia (CBG) as at the 21st.November in the year two thousand and eight(2008), thus: