Impacts of Russia-Ukraine conflict on exchange rate In the Gambia

Abstract

The Gambia is one of the least developed countries in sub-Sahara Africa that has experience sharp volatility in exchange rate of Gambian Dalasi against US Dollar in awake of Russia-Ukraine conflict. The Gambia has experience sharp shift in exchange rate since the conflict broke out due to the sanctions meted on Russia by US and her allies. The study found out that global supply chain disruption has further strained Gambian dalasi. This study examines the impact of Russia-Ukraine Conflict on Gambian Dalasi-US Dollar exchange rate. The study employed a timeline analysis to cover the major events that preceded and occurred during the conflict. This necessitated the use of scholarly and media reports in order to provide an analysis of the events and their implications on Gambia’s exchange rate. The study takes into account the dalasi exchange rate 120 days before and 240 days after the start of the Russian Ukraine war. The t test is used to analyze data. The Gambia must capitalize on its demographic advantage in order to strengthen its currency and self-sufficiency in energy, health, and food security. The study also provides a framework for the impact of the crisis on food policy, energy policy, exchange rate policy, and other macroeconomic policy, as well as the economic consequences such as dalasi depreciation and inflationary pressures in The Gambia. The study also shows how important investments in food policy and the energy sector for The Gambia