Central Bank of the Gambia is the apex bank in Gambia. It controls the activities of other banks ensuring that they meet up with the banking rules and regulation in Gambia.
Organisational Structure of the central Bank of the Gambia:
Banking at Central Bank of the Gambia:
This department is made up of the following divisions:
- Banking Office
- Banking and Payment Systems
- Open Market operations
- Currency
The Banking Office is responsible for providing banking services to Government and commercial banks. They are also responsible for providing a safe and efficient payment and settlement system for The Gambia. They are currently playing an important role in the development of across border payment system for the West African Monetary Zone.
The Open Market Operations Unit plans and executes the Bank’s operations in the money market to ensure that interest rates are in line with the policy stance of the Bank. Their operational contact with money market participants enables them to contribute to the monetary policy formulation process in the Bank as well as contribute to the development of a money market. They manage the issue and redemption of the domestic debt of The Gambia.
The currency office discharges the Bank’s statutory obligation to ensure that there is enough notes and coins to meet the demand of the public.
Economic Research Department at Central Bank of the Gambia:
This department is made up of the following divisions:
- Money, Credit and Banking
- Balance of Payment
- Liquidity Forecasting and Public Finance
- Statistics
- Real and Non-Bank Finance
The Economic Research Department is responsible for providing the Bank with the economic analysis necessary to conduct monetary policy. Monetary policy is one of the core functions of the Bank. Staffs of the ERD perform research on developments in the Gambian and international economy. They produce the Bank’s quarterly Bulletins and Annual Report. These reports give the Bank’s view of current economic developments. Staffs of the department also play the key role in the Bank’s relationship with the IMF and WAMI. The department’s work provides the input for the interest rate decisions that are made by the Bank to achieve the inflation objective. In addition, the department may conduct special studies for the Governor and the Board.
The Statistics unit compiles the monetary and other financial statistics for use by the Bank and WAMI, IMF and the World Bank.
Micro Finance at Central Bank of the Gambia:
This department is made up of the following divisions:
- Development Unit
- Supervision Unit
The department performs a function that is similar to the Financial Supervision Department. However, it focuses on the micro finance sector which is concerned about the credit and financing needs of that section of the population that does not have access to the banking system. This is currently a small part of the Gambian financial system but has been growing rapidly.
The Development Unit works to establish the institutional and operational framework within which the Bank can regulate the Micro Finance Institutions (MFIs). They coordinate with other bodies that work in this sector to prepare strategic action plans for the sector.
The supervision Unit deals with registration, licensing and supervision of MFIs to promote safety. They collect, analyse and disseminate data relating to MFIs and prescribe corrective action for MFIs.
Information Technology Unit at Central Bank of the Gambia:
The Unit is responsible for the management of the Bank’s information system resources. It provides computer-related support to all departments of the Bank and coordinates new information systems development projects.
Foreign affairs department at Central Bank of the Gambia:
The Foreign Department is responsible, jointly with the Financial Supervision Department, for evaluating the applicants to operate foreign exchange bureaus. They are responsible for foreign exchange dealing in the Bank. Staff of the department are also responsible for data collection and analysis of the interbank market for foreign exchange. They also calculate the weekly customs valuation rates.
Internal audit at Central Bank of the Gambia:
The Bank’s Internal Audit Department provides an independent appraisal of the adequacy and effectiveness of the Bank’s internal control systems and quality of performance as well as test compliance with laid down procedures. The head of department reports directly to the Governor. This department can delve into every aspect of the Bank’s work with the aim of providing independent advice to the Bank’s senior management in the conduct of their work as well as ensure that the Bank is taking appropriate levels of risk.
Finance Department at Central Bank of the Gambia:
This department is made up of the following divisions:
- Treasury
- Budget and Finance
- Verification and Implementation
The Department is responsible for financial planning in the Bank. It prepares and monitors the Bank’s budget to ensure that the Bank’s financial activities are consistent with the budget and agreed procedures. It is also responsible for the sanction of expenditure. Staff of the department prepare the daily and annual accounts of the Bank and are responsible for the Bank’s payroll.
The department is also responsible for the management of The Gambia’s external reserves. Currently, more than 80 Percent of the income of the Bank is derived from external reserves. They also are responsible for preparing and monitoring the Bank’s Foreign Currency Budget. This department handles all foreign currency payments and receipts. This includes external debt service and payment for services received by Government and the Bank and settlement of interbank foreign exchange deals entered into by the Bank.
Financial Supervision at Central Bank of the Gambia:
This department is made up of the following divisions:
- Banking supervision
- Insurance Compliance
The maintenance of a sound and stable financial system is one of the most important functions of the Bank. Financial stability is a precondition for a strong economy. The Bank tries to do this by regulating and supervising commercial banks and insurance companies.
Banking Supervision is responsible for licensing banks and foreign exchange bureaus. Staff of the department also prepare and implement regulatory guidelines. They conduct no-site and off-site analysis of banks to determine soundness and prescribe measures to stave off bank failure as well as promote safety and soundness of the banking system as a whole. The head of department is responsible for putting in place an effective infrastructure for supervision. The aim is to ensure that the financial system is safe and sound whilst at the same time encouraging innovation and competition.
The supervision of insurance companies was added to the mandate of the Bank by the 1997 constitution.
Administration at Central Bank of the Gambia:
This Department performs support services that are crucial to the success of the Bank’s activities. These include human resource management. Staff of the department helps recruit, discipline and retire employees. They coordinate the implementation of training of Bank staff. They are also responsible for all procurement in the Bank and for repairs to all the Bank’s properties. In addition, this department arranges for travel of Bank staff and provide protocol services to Bank staff and visitors. They are also responsible for organising meetings and conferences.
Gambian Currency: History of the Dalasi
Up until the middle of the nineteenth century the recognised method of payment in The Gambia was by Cowrie Shells. The earliest forms of “coin” were brass or copper rods and sometimes metal tokens. These were used as the means of exchange not only in Gambia but in other parts of Africa as well. By 1880 silver coins, mainly in the form of French 5 Franc pieces, were in general use. In 1892 the African Banking Corporation was established in Lagos and one of the Bank’s function was to supply West African countries with new British coin and repatriate redundant silver coin to London. Two years later in 1894 these responsibilities passed to the Bank of British West Africa.
In 1912 a Committee (the architect of the Currency Board) was set up to examine ways of establishing a more uniform currency and to decide on future policy. Although a one-penny and one-tenth of a penny coin had been issued from 1907, and a half-penny from 1911, the French 5 Franc silver pieces still dominated in The Gambia. In 1913 a three-penny, six-penny, one shilling and florin coin were issued.
At the end of 1915 the Committee that had now become the West the West African Currency Board, revised and enlarged its constitution to provide for a note issue. The proposal was put forward that currency notes be issued to each colony but that these should be “under the authority of the Currency Board in London”. The notes were to be a uniform design but bearing the distinguishing mark of each issuing office. This constitution was to remain unchanged until 1949. An order was thus placed with the London printers, Waterlow & Sons Ltd., for 2 shilling, 10 shilling and £1 banknotes. These entered circulation in The Gambia towards the end of 1917. With the exception of the 2 shilling note, the reception was generally favourable. The following year when a 1 shilling note was printed by the Bank of England it was also found to be as unpopular as the 2 shilling.
1919 marked the issue of a £5 note that was withdrawn only four years later through lack of popularity. It was not until 1954 that this note was reissued in The Gambia
Internal self-government came to The Gambia in October 1963 and on the initiative of the West African Currency Board an order for notes was placed with Bradbury Wilkinson & Co. Ltd. For 10 shilling, £1 and £5 notes. These were put into issue only four days after the new currency ordinance, that formed The Gambia Currency Board, came into force 1st. October 1964.
18th. February 1965 – Independence Day in The Gambia. The Gambia Currency Board issued its own coinage, produced by Royal Mint, to replace the West African Currency Board coin, on 21st. November 1966. The values remained the same although the one-tenth and half-penny coins were not issued, whilst a 4 shilling piece went into circulation. An 8 shilling coin was subsequently struck in 1970.
The assets and liabilities of The Gambia Currency Board were vested in 1971, in the Central Bank Of The Gambia. That same year the currency was decimalised on the basis of 1 Dalasi = 100 Bututs. The coins were minted by the Royal Mint. The notes of 1, 5, 10 and 25 Dalasi denominated were printed by Bradbury Wilkinson & Co. Ltd. With the royal effigy being replaced by the portrait of H. E. The President of the Republic of The Gambia on both the notes and the coin.
To commemorate the tenth anniversary of Independence in The Gambia a new 10 Dalasi coin was produced in 1975.
Contact: http://www.cbg.gm
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