Chapter

THE GAMBIA

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2000
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Status Under IMF Articles of Agreement
Article VIIIDate of acceptance: January 21, 1993.
Exchange Arrangement
CurrencyThe currency of The Gambia is the Gambian dalasi.
Exchange rate structureUnitary.
Classification
Independently floatingThe exchange rate of the dalasi is determined in the foreign exchange market. Commercial banks and foreign exchange bureaus are free to transact among themselves, with the Central Bank of The Gambia (CBG), or with customers at exchange rates agreed on by the parties to these transactions. The CBG conducts a foreign exchange market review session on the last working day of each week with the participation of the commercial banks and foreign exchange bureaus. During this session, the average market rate during the week is announced as the rate for customs valuation purposes for the following week.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketNo.
Arrangements for Payments and Receipts
Prescription of currency requirementsNo.
Payment arrangements
Regional arrangementsThe Gambia participates in the WAMA.
Clearing agreementsYes.
Administration of controlNo.
International security restrictionsn.a.
Payment arrearsNo.
Controls on trade in gold (coins and/or bullion)No.
Controls on exports and imports of banknotesNo.
Resident Accounts
Foreign exchange accounts permittedNo.
Accounts in domestic currency convertible into foreign currencyn.a.
Nonresident Accounts
Foreign exchange accounts permittedNo.
Domestic currency accountsYes.
Convertible into foreign currencyAccounts denominated in dalasis are designated external accounts and may be opened without reference to the CBG when commercial banks are satisfied that the account holder’s source of funds is from abroad in convertible foreign currency. Designated external accounts may be credited with payments from residents of other countries, with transfers from other external accounts, and with the proceeds of sales through the banking system of other convertible currencies. They may be debited for payments to residents of other countries, for transfers to other external accounts, and for purchase of other convertible currencies.
Blocked accountsNo.
Imports and Import Payments
Foreign exchange budgetNo.
Financing requirements for importsNo.
Documentation requirements for release of foreign exchange for imports
Preshipment inspectionYes.
Import licenses and other nontariff measures
Negative listImports of certain goods are subject to prior authorization for health and security reasons.
Open general licensesYes.
Import taxes and/or tariffsCustoms duty rates range from zero to 20%. All merchandise imports are subject to a national sales tax of 10% calculated on the c.i.f. value. Imports by the government, diplomatic missions, and charitable organizations are exempt from this tax.
State import monopolyNo.
Exports and Export Proceeds
Repatriation requirementsNo.
Financing requirementsNo.
Documentation requirementsNo.
Export licenses
Without quotasThe exportation of forestry products is subject to prior authorization from the Forestry Department.
Export taxesNo.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersNo.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsNo.
Restrictions on use of fundsNo.
Capital Transactions
Controls on capital and money market instrumentsThere are no capital markets, money markets, or stock exchanges in The Gambia.
Controls on derivatives and other instrumentsThese instruments do not exist in The Gambia.
Controls on credit operations
Financial credits
To residents from nonresidentsYes.
Controls on direct investmentNo.
Controls on liquidation of direct investmentNo.
Controls on real estate transactionsThere are controls on all real estate transactions.
Controls on personal capital movementsn.a.
Provisions specific to commercial banks and other credit institutions
Differential treatment of deposit accounts in foreign exchangeThere are no deposit accounts in foreign exchange.
Open foreign exchange position limitsThe limit in the interbank foreign exchange market set by the CBG must be observed on a weekly basis, and transactions must be reported daily to the CBG. On September 30, 1999, the ceiling on foreign exchange holdings by commercial banks was replaced by foreign exchange exposure limits.
Provisions specific to institutional investorsNo.
Other controls imposed by securities lawsNo.
Changes During 1999
Capital transactions
Provisions specific to commercial banks and other credit institutionsSeptember 30. The limit on foreign exchange holdings by commercial banks was replaced by foreign exchange exposure limits.

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