Prevailing Liberian Dollar Shortage in the Economy

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The Liberian dollar shortage in the economy has become more critical as the year – end festivities draw closer. Businesses and Salary earners especially the Civil Servants who are now being paid in Liberian Dollars are experiencing frustration withdrawing cash to meet their needs.

Our reporters went into the market and visited various banks to access the current situation. The findings are mixed and the degree of scarcity of the Liberian dollar varies from bank to bank.

One of the banks who have been reliably and constantly supplying cash has been the United Bank for Africa(UBA)Plc.  This paper has reliably gathered that there is no shortage of Liberian dollars at the United Bank for Africa Liberia Limited (UBA). Customers were seen on queues making Liberian dollar withdrawals from the ATMs at their branches. Some of the customers interviewed also confirmed they were able to make their withdrawals across the counter without hindrance and are not aware of any scarcity. The only concerns was the payments were mostly in lower bills of L$50 and L$100.

Our reporter spoke with the Managing Director of UBA, Lekan Balogun and he gave assurance that UBA Liberia will continue to delight her esteemed customers by ensuring their cash needs are met at all times especially during this festive season. He stressed that UBA Liberia has been the only bank issuing Liberia Dollar denominated VISA Cards and ATMs dispensing Liberia Dollars in the market. “Our ATMs are 24/7 and strategies have been put in place to ensure uninterrupted services”. We will continue to encourage our customers – especially the individuals and salary account holders to obtain their L$ VISA cards to enable them have access to cash at our ATMs at their own convenient time.’

When our reporter asked if there is scarcity of Liberian dollars in UBA Liberia, the Managing Director responded “No Bank will have cash shortage to meet withdrawals and at the same time be evacuating cash to the CBL. We have been evacuating excess cash to CBL on regular basis. We don’t have such challenge in our bank and the records are there in CBL to confirm’’.

Our reporter visited other banks and the stories are different as some workers are seen on queue waiting to make withdrawal across the counter. The worst hit banks are those that maintain account for majority of the Government workers -whose salaries are paid in Liberia Dollars and the Thrift Societies making withdrawals from their target savings.

Currency Economic Situation:

Liberians and foreign residents are brooding over the excessive increment of the United States Dollar rate over its Liberian Dollar counterpart as the rate continues to climb to a record high, a situation that has plunged the ordinary Liberians into more hardship.

Many decried this situation and blamed it on the Liberian Government of being insensitive to the plight of the people, noting that the US dollar has taken over the country’s economy to the extent that the local currency is greatly affected by disparity in the local market. Also, more need to be done to reduce the use of cash to barest minimum. There should be deliberate policy on digital banking to avert future cash squeeze occurrence.

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About Cholo Brooks 5288 Articles
Joel Cholo Brooks is a Liberian journalist who previously worked for several international news outlets including the BBC African Service. He is the CEO of the Global News Network which publishes two local weeklies, The Star and The GNN-Liberia Newspapers. He is a member of the Press Union Of Liberia (PUL) since 1986, and several other international organizations of journalists.