Foreign Currency Use in The Gambia is Illegal says Central Bank Governor Saidy

Central Bank Governor Buah Saidy © Askanwi

By Haddy Ceesay

The growing use of foreign currency in local transactions across The Gambia has triggered alarm among both the public and economic authorities. From bustling commercial centers to remote border towns, it has become increasingly common for businesses to demand payments in U.S. dollars, euros, or CFA francs—raising serious concerns about the legality and impact of such practices.

Allegations have emerged that some hotels exclusively charge guests in foreign currencies, while certain traders and service providers now prefer CFA francs for transactions within Gambian borders. This trend has fueled speculation and criticism from citizens worried about the erosion of the dalasi’s value and authority.

During a recent Monetary Policy Committee (MPC) press conference, Central Bank Governor Buah Saidy responded firmly when asked by an Askanwi Media journalist what measures are being taken to address this issue.

“Any Gambian who is a businessman or economic agent—whether buying or selling—must know that asking for payment in dollars is illegal. The legal tender in this country is the dalasi,” Governor Saidy declared. “We will issue a press release to reinforce this message, and the law will be enforced. Anyone who violates it will be prosecuted.”

He clarified that while some establishments may offer the option to pay in foreign currencies, this practice is not compulsory—and it runs contrary to Gambian law.

“It’s not mandatory to pay in U.S. dollars or any foreign currency. All domestic transactions should be carried out in dalasi. That is our legal tender,” he emphasized.

The governor also condemned the growing trend of landlords demanding rent payments in U.S. dollars, describing it as not only illegal but detrimental to the national economy.

“Rent must be paid in dalasi. If someone demands foreign currency, it forces you to buy dollars on the market just to pay rent. That’s unfair and puts unnecessary pressure on our local currency,” he explained.

Governor Saidy stressed that foreign currency should be reserved solely for international trade and not used in everyday local transactions.

According to Governor Buah Saidy, one of the causes of inflation is “due to currency depreciation”. Our recent publication highlighted that imports from Senegal surged from D8.5 billion in 2023 to D14.4 billion in 2024, marking a 70% increase and making Senegal the country’s top trading partner.

It’s important to note that whenever the Senegalese CFA Franc goes up against the Dalasi, the cost of goods imported from Senegal will also increase. This is exactly what happened in the first quarter of 2025 as the Gambian Dalasi continued to depreciate in value.

“From January to March 2025, the Dalasi depreciated against the United States dollar by 1.7%, the British pound sterling by 0.2%, and the CFA franc by 0.5%. However, it appreciated against the Euro by 1.2%,” said Governor Saidy.

One concern raised around the use of the Senegalese CFA Franc in the country is its alleged use at the Senegambia Bridge. A Foroyaa Newspaper editorial noted that “currently, just like the Bamba Tenda / Yelli Tenda crossing of the past, the Senegambia Bridge is a major source of foreign exchange. Payment in CFA currency by Senegalese users does enable The Gambia to earn foreign exchange.” However, it’s not clear if such transactions are also considered unlawful or sanctioned by law.

As the Central Bank moves to clamp down on these unlawful practices, members of the public are being encouraged to report any business or individual that demands foreign currency for local goods or services.

Governor Buah Saidy concluded with a promise of broader public education and official communication on the matter, warning that continued foreign currency use in local commerce undermines the dalasi and threatens The Gambia’s monetary sovereignty.