Many households in the country find it difficult to cope with the alarming high rate of the US dollar to the Liberian currency.
The menace or the aftermath of the Ebola virus still continues to impede the growth of our country’s economy, as foreign currency becomes scarce due to low export activities.
Before the Ebola epidemic, foreign currencies used to flow through the mining sector. Companies export their products and in return, the country benefits through this influx.
Though some of the companies have resumed operations, little or no effect is seen in the economy of the country.
Another factor responsible for the devaluation of our currency is lack of industries. The country at present does not produce anything of international market values. Every year, millions of United States dollar is spent on the importation of rice which is the staple food. Foreign currencies that come through donor projects cannot meet the demand of the country thereby securing more value to that of the Liberia dollar.
The steps recently taken by the Central Bank of Liberia are timely and appropriate to save our Liberian currency.
It is expected that the issuance of treasury instruments by the bank will see an increase in its frequencies and volume of interventions in the foreign exchange market through its auction mechanism. This will ensure that there is a stable rate across the country.
More so, the implementation plan which starts this week will also ensure that the bank monitors its monetary policy stance with the aim of achieving low inflation and broad exchange rate stability.
To achieve this, the bank needs to be robust in clamping down on illegal foreign exchange operators and regulate a single rate daily which must be abided by local currency hoarders. By doing so, every hoarder across the country will be transacting at the same rate.
The implementation process will only succeed through robust monitoring and surveillance of bureaus and hoarders that are located in every street corner to ensure they abide by the rules and regulations of the bank.