Cash Circulation in Gambia Increased

The amount of money in circulation in The Gambia has increased by more than 20 per cent, according to the Point.

“Money supply grew by 21.7 per cent in June 2017,” CBG Governor Bakary Jammeh said at the recent Monetary Policy Committee press briefing.

It’s the highest amount in more than 10 years, data from the Central Bank have indicated.

Economic analysts said an increase in the supply of money lowers interest rates, which in turns generates more investment and puts more money in the hands of consumers, thereby stimulating spending.

Commercial banks in the country have already started to reduce their interest rates.  Mega Bank, for instance, last week announced a reduction in its prime lending rate.

Meanwhile, the Central Bank said quasi money, which includes savings account balances and Treasury bills, has increased by 24.2 per cent to D13 billion as at end June 2017.

Edriss K :