Banjul, Gambia (PANA) – Western Union and Money Gram operators in the Gambia have complained that the government’s decision to fix the exchange rates for the local currency, the Dalasi, is having a negative effect on their business.
“We lost most of our customers due to the government’s action,” said Alieu Jobe, a Western Union operator in Serekunda, Gambia’s commercial city.
“Most of the Western Union or Money Gram (outlets) are not working due to the ‘bad rates’ on the hard currencies,” Jobe said Wednesday.
On May 4 , the presidency issued a directive warning business people who are involved in foreign exchange speculation and hoarding to desist immediately or face very drastic action.
It also fixed the exchange rate of the local currency at D40 to US$1, citing concerns over the rapid depreciation of the local currency against major foreign currencies, particularly the US Dollar.
On Tuesday, opposition leader Hamat N.K. Bah told the local media that fixing the exchange rate of the Dalasi against major international currencies is harmful to the economy because investors will get scared, and also because the decision will hinder the flow of foreign direct investments into the country.
“Exchange rates should be determined by market forces, and fixing it will be seen as against the principles of a free market economy,” Mr. Bah said.
