The dalasi is the official currency of Gambia, a small country located in West Africa. It was introduced in 1971, replacing the Gambian pound. The word "dalasi" is derived from the English word "dollar," which reflects the initial equivalence between one Gambian dalasi and one United States dollar.
The dalasi is abbreviated as GMD, which stands for Gambian dalasi, and is further divided into 100 bututs. Coins are available in denominations of 1, 5, 10, 25, and 50 bututs, as well as 1 dalasi. Banknotes are circulated in denominations of 5, 10, 25, 50, 100, and 200 dalasis.
The value of the dalasi is determined by the foreign exchange market and is influenced by various economic factors such as inflation, interest rates, and foreign investment. It is primarily used for everyday transactions within Gambia, including buying goods and services, payment of bills, and wages.
As with any other currency, the dalasi's exchange rate fluctuates against other major world currencies, especially the United States dollar and the euro. This fluctuation affects Gambia's trade, tourism, investment, and overall economic conditions.
The Central Bank of Gambia is responsible for issuing and regulating the dalasi. It maintains price stability through monetary policies and manages the country's foreign exchange reserves to ensure the smooth functioning of the currency.
