Gambia Money Market News

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Gambia Money Market News

Thursday, 08 December 2011 22:56

Yield On 91-day (s/s) bill at year’s low
(JollofNews) - At this week’s auction, the yield on the 91-day (s/s) bill was down 10bps to 7.64%. It was over-subscribed by almost 75%. This is the lowest the yield on the bill has fallen since it was introduced on the Gambia Money Market.

Yields on all other tenors on the market moved northwards. The benchmark 91-day bill was up 6bps to 7.70%. The 182-day bill was up 11bps to 9.12%, with the 1-year note inching up 2bps to 10.94%. The amount being offered on tender at next week’s auction is D400million. GAMBIA_MONEY_MARKET_NEWS_LOGO

This is double the D200million that was offered at this week’s auction. Of even greater interest is the D230million on offer for the 1-year note, and how investors will react to these figures. We expect to see some northward movement in yields.

Currency Market Updates
At this week’s close, the local currency in the interbank market depreciated against the major international currencies.

It was down 25bututs against the Dollar to D29.63, down 50bututs against the Pound Sterling to D46.00, down 40bututs against the Euro to D40.40 and down D150bututs against the CFA franc (5000) to D306.50.

The Dalasi however experienced mixed fortunes in the parallel market. While it appreciated by D150bututs against the Euro to D39.25 and up by 500bututs against the CFA franc (5000), it depreciated by 25bututs against the Dollar to D30.00 and down 35bututs against the Pound Sterling to D46.85

Local News
The Agric-business Services & Producers’ Association (ASPA) in consultation with the Government of The Gambia has issued a press release announcing a farm-gate Groundnut Producer Price of D9, 300.00 per metric ton for the 2011/2012 groundnut marketing season (compared to D8.500.00 for the 2010/2011 season). ASPA also declared Monday 5th December 2011 and 15th March 2011 as the official start and finish dates for the season.

In a related development, The Gambia Groundnut Corporation Ltd (GGC) announced that the depot price for this year’s groundnut marketing season is pegged at D10, 250.00 per metric ton.