By Reuben Sei Waylaun
President George Weah has announced that major reshuffle will shortly take place at the Central Bank of Liberia (CBL).
Addressing the nation on the state of the economy and other development issues Wednesday May 29, 2019, the Liberian leader said the measure is meant to restore better financial and accounting procedures at the bank.
Speaking further, the Liberian Chief executive said those irregularities that had occurred at the bank show that there is a system problem at the bank that needs serious intervention.
He has also called on officials of the Central Bank of Liberia to step up to their game and be more proactive in the discharged of their duties.
President George Weah said he will in three months announce new Bank Governors and Board of Governors to help in the revamping process of the CBL.
According to him, his administration as part of some new measures that are on the way will not borrow money from the CBL.
“On the monetary front, we are taking actions to instill greater confidence in the Central Bank of Liberia and the banking sector at large. The integrity and independence of the Central Bank will be assured and protected under my administration, and this resolve will be critical in the years ahead,” he said.
He said “I wish to announce that the Government of Liberia, under my leadership, will no longer borrow from the Central Bank of Liberia for its short-term liquidity needs. For monetary policy to work, Liberians must develop confidence in the banking sector. Today, most of the Liberian dollars in our economy is outside the banking sector.”
“We are shortly going to announce new policy initiatives that should increase the confidence of Liberians in the Liberian dollar. These policies will provide strong incentives for Liberians to keep their money in the bank and for commercial banks to invest more in the Liberian dollar economy,” he added.
The Liberian chief executive said his government recognizes the current economic situation that is directly affecting the ordinary people, but was quick to assure his people that he is working day and night to help address the issue.
“Today, we face a difficult economic moment. But this moment, like other moments of our history, will soon come to pass. The economic challenge we face today has to do with the structure of our economy. We have lost significant revenue from the fall in the prices of iron ore and rubber, and several of our rubber farmers have lost their income and ability to spend in the economy.
“Liberia is no longer receiving the emergency aid that came in the years after war, and large grants from our multilateral partners have also dried up. The amount of remittances we receive from abroad in US dollars has also declined. All of these realities complicate our macroeconomic situation. The sudden drop in US dollar inflows puts pressure on the economy, and devalues the Liberian dollar, moving prices upward,” he said.
He further added “The macroeconomic policies we have today are policies tailored to the time that we had free inflows of United States dollars. We are now changing these policies to reflect the economic realities of our time. I want you to know that I am aware of the difficulties and hardships that the rising exchange rate is causing you, and the effect it is having on prices of all goods and commodities in the market. I am deeply concerned about these issues, and I am working day and night to resolve them.”