The Executive Governor-designate for the Central Bank of Liberia, J. Aloysius Tarlue, currently facing confirmation hearing stresses the need to first put in place control mechanism, strengthen internal system and rebrand the Central Bank before the government goes ahead with printing of new bank notes.
Facing the Senate committee on banking and currency at the Capitol Thursday, 05 December Mr. Tarlue says his vision for the CBL if confirmed, is to restore lost confidence and the entire banking sector here.
”This will be done through reforms aimed at improving governance, ensuring technical soundness in policies, and achieving financial sustainability of the CBL and above all, ensure that the CBL is focused on carrying out monetary policies that seek to keep inflation low, stabilize the exchange rate, as we as ensure Liberia has enough foreign exchange buffers,” he vows.
Tarlue says relative to improving governance, a key priority will be to promote independence of the Central Bank, and that the CBL act will be reviewed and amended, if necessary.“Internal audit and control functions will be strengthened. Key policy decisions will be made and implemented with the approval of the board of governors. We will strengthen the research department of the bank so that policy decisions are informed by proper analysis and evidence. We will ensure that the CBL is focused on carrying out monetary policies that seek to keep inflation low, stabilize the exchange rate, and ensure that Liberia has enough foreign exchange buffers,” he adds.
According to him, the objective of his administration would be to regain and then maintain price stability, “By this, I mean reducing the rate of inflation to single digit over time. This is necessary because the poorest and most vulnerable Liberians earn and spend primarily in Liberia dollars. What this means is that over the last two years, inflation was running at an annual rate of about 30 percent.”
The Executive Governor-designate says on achieving financial sustainability of the CBL, his administration will undertake a strategic and functional review of the CBL’s operations, noting the Bank is currently incurring operational loses due to various inefficiencies, including a bloated workforce.By E. J. Nathaniel Daygbor