Gambia Money Market News

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Gambia Money Market News

Wednesday, 21 December 2011 00:39

(JollofNews) - For the fourth week running the yield on the benchmark 91-day bill moved north. The bill was up 21bps this week to 8.09 per cent.

The counter–part 91-day (s/s) was up a whooping 41bps to 8.16 per cent. The 182-day bill was up 35bps to 9.9.59 per cent. The yield on the 1-year note was the only tenor that moved south this week. It was down 22bps to 11.24.

The note was over-subscribed by 14 per cent. Investors on the money market seem to have a high preference for the 1-year note. The 1-year note has GAMBIA_MONEY_MARKET_NEWS_LOGO

consistently been oversubscribed since 16th November 2011. The total amount being offered by the authorities for tender at next week’s auction is D360million.

This is D80m more than the D280m that was on offer at this week’s auction. We expect to see more northward movement in yields.

Currency Market Updates
At this week’s close, the Dalasi remained unchanged against the Dollar at D29.75 in the interbank market. It depreciated against the Euro and the Pound by 45bututs and 15bututs respectively to D46.50 and D40.50.

In the Parallel market, the Dalasi closed unchanged against the Pound Sterling and the Euro at D38.50 and D46.50 respectively. It depreciated by 25bututs against the Dollar to D29.75.

Local News
The Minister of Finance and Economic Affairs has presented the 2012 Budget to the National Assembly.

According to the Minister, the 2012 budget was prepared on the basis of key macroeconomic assumption; to sustain real GDP at 5.5 per cent, inflation at 5%, and overall budget deficit projected at 3 per cent, with the current account balance excluding budget support projected at 15.3 per cent.