One writer has reacted to an article reproduced on Kairo News. The said article – culled from www.sidisannehblogspot.com – explained that the Central Bank of the Gambia has imposed 15% tax on all foreign currency transactions.
In a reaction published below, the author who goes by the name JC, thought the article is misleading. Read the reaction below:
On 31st October, the Central Bank of The Gambia issued 3 separate circulars addressing foreign currency transactions in 3 main areas:- Foreign Currency Shipment, Sale of Foreign Currency to the Central Bank and maintaining Orderliness and Transparency in the Domestic Foreign Exchange Market.
It is not true that the Central Bank has levied a 15% tax on all foreign currency transactions. On the contrary, the Central Bank, via one of the circulars, issued directives requesting commercial banks to sell 15% of their weekly foreign currency purchases to the Central Bank, mainly to enable the latter build its General International Reserves which are running dangerously low, covering just about 2 months of Import Cover. The circular, in no way imposed any TAX on foreign currency transactions. An attempt to impose tax (as high as 15%) on foreign currency transactions would be counter-productive and one does not need to be an economist to know that.