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Saturday, October 31, 2020

Letters: Should The Central Bank continue with the proposed new banknotes?

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Dear editor,

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”The Central Bank of The Gambia introduced new banknotes, effectively removing former president Yahya Jammeh’s face on the country’s currency, and saying all existing banknotes will remain in circulation until further notice.

Central Bank governor, Bakary Jammeh, announced the new banknotes as 5 Dalasis, 10 Dalasis, 20 Dalasis, 50 Dalasis, 100 Dalasis, and 200 Dalasis, the same as the current notes but a change in colours”.

However news reaching us through the African Exponent 19th June, 2019 publication has it that after two days of high-level discussions, Economic Community of West African States (Ecowas) ministers and central bank governors recently agreed on a draft report on the establishment of a regional pan-African currency by 2020. The report will be reviewed by heads of State in July 2019 on the establishment of a new regional currency.

I am a supporter of a regional currency and in 2020 we will have a single currency in the Ecowas countries, whether they speak English, Portuguese or French, and the CFA Franc will become outdated.

Hopefully, the bloc will not postpone the process yet again as has happened since the adoption of the Ecowas Monetary Cooperation Programme (EMCP) of 1987 in Conakry, as noted by Guinean President Alpha Condé.

It is argued that printing money creates a sense of nervousness among both economists and the general public.

Besides, if a government prints money faster than the growth of real output, it reduces the value of money and this invariably causes inflation.

Money is valuable because people will give you goods and services in exchange for the money.

Money derives its value from the goods and services.

Printing more money doesn’t make more goods and services appear.

It simply spreads the value of existing goods and services.

Therefore, the governor of the Central Bank of The Gambia should take note of the recent development to minimise defects to ensure that our meagre resources are not wasted and protected for a better Gambia we

want. 2020 could mark the end of the colonial CFA Franc currency in 8 countries when Ecowas introduces a new West African regional currency. It will be a win for African integration and a big loss for neo-colonialism.

Saidina Alieu Jarjou
Pan Africanist

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