The Central Bank of Liberia has with immediate effect initiated several steps to address the current volatility in the exchange rate here, including mopping up excess liquidity by issuing Treasury Instruments with attractive high yielding interest rates.
The Bank says it will compliment these Treasury instruments with high yielding CBL Bills as well, if required. In a statement issued in Monrovia over the weekend, the CBL also says it intends to increase its frequency and volume of interventions in the foreign exchange market through auction mechanism, announcing that these enhanced measures commence in the first week of July, 2017.
The Central Bank continues that it is keenly aware of the current exchange rate volatility being experienced between the Liberian Dollar and the US Dollar, and is exerting all efforts at its disposal to ensure a stable exchange rate in the market. The exchange rate is currently is between 117 and 118 Liberian Dollars to one United States Dollar.
Meanwhile, the CBL is once again warning those who will attempt to take advantage of the prevailing volatility for profiteering to desist from such unwholesome activities. The Bank has resolved to reinforce its monitoring mechanisms to ensure that illegal foreign exchange operators and local currency hoarders do not use the current volatility in the Liberian dollar exchange rate to the detriment of the Liberian people.
“In conclusion, the CBL reaffirms that its monetary policy stance will continue to be aimed at achieving low inflation and broad exchange rate stability”, the statement says. Press Statement