Annual Report on Exchange Arrangements and Exchange Restrictions, 2007
Chapter

THE GAMBIA

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
October 2007
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(Position as of January 31, 2007)

Status under IMF Articles of Agreement
Article VIIIDate of acceptance: January 21, 1993.
Exchange Measures
Restrictions and/or multiple currency practicesNo restrictions as reported in the latest staff report as of December 31, 2006.
International security restrictions
Other security restrictionsn.a.
References to legal instruments and hyperlinksn.a.
Exchange Arrangement
CurrencyThe currency of The Gambia is the Gambian dalasi.
Exchange rate structureUnitary.
Classification
Managed floating with no predetermined path for the exchange rateThe exchange rate of the dalasi is determined in the foreign exchange market. The Central Bank of the Gambia (CBG) periodically intervenes in the foreign exchange market by selling and buying foreign exchange. Since 2004, such intervention has been limited to purchasing foreign exchange to augment its international reserves. Commercial banks and foreign exchange bureaus are free to transact among themselves or with customers at exchange rates agreed on by the parties to these transactions. The CBG deals only with commercial banks but 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 applied to government transactions and customs valuations for the following week.
The Gambia participates in the W-ERM II of the WAMZ, which requires that the spot exchange rate between the Gambian dalasi and the dollar be maintained within margins of ±15% around the central rate. However, the authorities have not yet implemented these measures.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketNo.
References to legal instruments and hyperlinksn.a.
Arrangements for Payments and Receipts
Prescription of currency requirementsn.a.
Payments arrangements
Regional arrangementsThe Gambia participates in the WAMZ.
Clearing agreementsYes.
Barter agreements and open accountsn.a.
Administration of controlNo.
Payments arrearsNo.
Controls on trade in gold (coins and/or bullion)No.
Controls on exports and imports of banknotesNo.
References to legal instruments and hyperlinksn.a.
Resident Accounts
Foreign exchange accounts permittedYes.
Held domesticallyCommercial banks are allowed to open foreign currency deposit accounts for their clients, provided the banks have demonstrated to the CBG that they have well-developed internal risk-control systems in place.
Held abroadNo.
Accounts in domestic currency held abroadn.a.
Accounts in domestic currency convertible into foreign currencyn.a.
References to legal instruments and hyperlinksn.a.
Nonresident Accounts
Foreign exchange accounts permittedYes.
Domestic currency accountsYes.
Convertible into foreign currencyYes.
Blocked accountsNo.
References to legal instruments and hyperlinksn.a.
Imports and Import Payments
Foreign exchange budgetNo.
Financing requirements for importsNo.
Documentation requirements for release of foreign exchange for imports
Letters of creditYes.
Import licenses and other nontariff measures
Negative listImports of certain goods are subject to prior authorization for health or security reasons.
Open general licensesYes.
Import taxes and/or tariffsEffective January 1, 2006, customs duty rates range from zero to 20% (previously, 18%). Effective January 1, 2007, all merchandise imports are subject to a national sales tax of 15% (previously, 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.
References to legal instruments and hyperlinksn.a.
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 taxesA 2.05% administrative fee is levied on all items, except diamonds, which are taxed at 3%; exports of fish, fish products, groundnuts and their by-products, and all exports to the EU are exempt.
References to legal instruments and hyperlinksn.a.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersNo.
References to legal instruments and hyperlinksn.a.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsNo.
Restrictions on use of fundsNo.
References to legal instruments and hyperlinksn.a.
Capital Transactions
Controls on capital transactionsNo.
Repatriation requirementsNo.
Controls on capital and money market instrumentsThere are no capital markets or stock exchange markets 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 transactionsNo.
Controls on personal capital transactionsNo.
References to legal instruments and hyperlinksn.a.
Provisions Specific to the Financial Sector
Provisions specific to commercial banks and other credit institutions
Borrowing abroadThese transactions are not restricted except when controlled under the Financial Institutions Act.
Maintenance of accounts abroadThese transactions are subject to reporting to the CBG.
Lending locally in foreign exchangeYes.
Investment regulations
Abroad by banksRestrictions apply on the types and amounts of investment abroad. Banks may not invest in foreign securities.
Open foreign exchange position limitsForeign exchange exposure limits set by the CBG must be observed on a weekly basis, and transactions must be reported daily to the CBG.
Provisions specific to institutional investors
Insurance companiesn.a.
Pension fundsn.a.
Investment firms and collective investment fundsn.a.
References to legal instruments and hyperlinksn.a.
Changes during 2006
Imports and import paymentsJanuary 1. Customs duties were increased to a maximum of 20% from 18%.
Changes during 2007
Imports and import paymentsJanuary 1. Sales tax on imported merchandise goods was increased to 15% from 10%.

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