Central Bank Governor Blames Depreciation Of Liberian Dollars Fall On Key Exports; Iron Ore, Rubber And Others

{By Eldred Thomas/GNN Senior Correspondent}

Executive Governor of CBL, Milton Weeks
Executive Governor of CBL, Milton Weeks

Central Bank Executive Governor Milton Weeks has cautioned Liberians against providing misleading information about the current depreciation of the Liberian dollars on the local market.

Liberia has in recent weeks experienced sharp rise in the exchange rate between the Liberian and United States dollars which has scaled up to One United States to Ninety-six Liberian Dollars a situation being described as extreme economic difficulties on citizens and foreigners alike.

Addressing journalist at the Ministry of Information regular press conference on Thursday of this week, the CBL Executive Governor named the decline in the prices of the country’s key export Iron Ore and rubber and UNMIL drawdown among others as one of the major problem.

 He also attributed the financial shock to collapse in the prices of Global Primary Commodities, noting the situation is a financial and technical one that should not be based assumptions.

According to Governor Weeks the decline continues to affect production, additional investment and the level of employment in the iron ore sub region thus undermining revenue generating capacity of government.

He also rubbished rumors that the depreciation of the Liberian dollars is due to printing and releasing of additional local currency notes on the market.

Governor Weeks said the depreciation of the Liberian dollar is not unique to Liberia as other countries in the West African region are experiencing similar financial shock in their economies.

He named currencies affected from the financial shock as the Nigerian Naira, Sierra Leonean Leone, Guinean Franc, and the Ghanaian Cedi and Liberian dollars which has dropped by 10.5 per cent.

He however observed that some businesses are holding large quantities of Liberian dollar currency instead of using the banking system, such action are noted has the propensity to caused economic sabotage.

Governor Weeks said the CBL will continue to work with the fiscal managers at the Ministry of Finance and Development Planning to address the financial shock faced by the country.

He said in an attempt to mitigate the Liberian dollar depreciation, the CBL intervened with the amount of 14.5 million and the foreign exchange market with US$ 3 million.

 “The Central Bank remains committed to safe guarding the financial sector and using all tools available at its depositors  to protect the interest of the nation and its people to ensure growth and development, Governor Weeks assured Liberians.

The clarification comes in the midst mounting concerns from all sectors of the Liberian society about the sharp and unprecedented increase in the rate between the Liberian and United Sates dollars.

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About Cholo Brooks 14321 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, and is currently contributing to the South Africa Broadcasting Corporation as Liberia Correspondent.