Gambian Dalasi (GMD)

Basic Concepts of the Gambian Dalasi

The Gambian Dalasi is the official currency in circulation in the West African country of The Gambia, with the ISO 4217 currency code GMD and the standard symbol "D". The currency is issued and managed by the Central Bank of The Gambia, and uses the decimal system, where 1 Dalasi is equal to 100 Butuan. Currently, all transactions in The Gambia are legally settled in Dalasi.

Countries where Gambian Dalasi is used

The circulation of Gambian Dalasi is strictly limited to the entire territory of the Republic of The Gambia. This small West African country is surrounded by Senegal to the north, east and south, and the Atlantic Ocean to the west, with an area of about 11,300 square kilometers. Due to the narrowness of the Gambia's territory and its distribution along the banks of the Gambia River, the Dalasi's area of use is characterized by a banded distribution. Foreign exchange is done through specific financial institutions.

Gambian Dalasi Units and Denominations

The currency system consists of coins and banknotes. Coins are available in denominations of 1, 5, 10, 25, 50 Btu and 1 Dalasi, with Btu coins circulating less in practice. Banknotes are available in denominations of 5, 10, 20, 25, 50, 100 and 200 Dalasi, with national symbols such as the Gambia's national bird and national costume printed on the face of the note. 2022 new plastic banknotes will be issued to gradually replace the old version of the banknotes.

The Gambia Dalasi historical background

The Dalasi officially replaced the West African Pound Sterling as the legal tender of The Gambia on July 1, 1971, when it maintained a fixed exchange rate with the Pound Sterling. The name "dalasi" is derived from the Mandingo term for "dollar". The currency has undergone a number of reforms: the introduction of the New Dalasi (1 new coin = 5 old coins) in 1987, and the release of a new series of banknotes with upgraded security in 2019. The Dalasi has continued to depreciate in recent years due to the global economy, with an exchange rate of around 70:1 to the US dollar in 2023.

Gambian Dalasi Economic Characteristics

As the currency of an agricultural country, the Dalasi exchange rate is closely linked to peanut export earnings. The Central Bank of The Gambia regulates the exchange rate through a system of foreign exchange auctions, but hard currencies such as the U.S. dollar still carry a premium on the black market. Because domestic inflation has long been higher than international levels (11.5 percent in 2022), special denominations such as the 25 dalasi are retained in small transactions to accommodate changes in purchasing power.