Senate cites fiscal and monetary institutions

The Liberian Senate has mandated its Committee on Banking and Currency to invite government’s fiscal and monetary institutions to explain reasons for the skyrocketing exchange rate that is affecting businesses in the country.

Plenary session’s decision on Thursday, 22 June followed a communication from Grand Bassa County Senator, Nyounblee Karnga-Lawrence that craved the indulgence of the senate to invite both the Ministry of Finance and Development Planning and the Central Bank of Liberia respectively to provide reasons for the high exchange rate in the Liberian market.

In her letter addressed to Senate Pro-temp Armah Jallah, Senator Karnga-Lawrence expressed resentment over the lack of control by fiscal and monetary institutions to regulate the exchange rate between the Liberian dollars and the U.S. dollars, which is currently at 117LRD or 118 LRD to US$1.00.

-The lawmaker said as of June 21, 2017, appallingly, the buying rate in some parts of the country was U$1: 120LRD while the selling rate was U$1: 125LRD. “Even though on the same date, the Central Bank of Liberia mandated US$1:112.75LRD and US$1:113.46LRD for buying and selling rates.”

“This may inform the senate to take appropriate action as is in our purview in order to curb these unprecedented circumstances,” she requested. The senator argued that the strength of the United States dollar against the Liberian dollar is causing small Liberian businesses or business owners to go out of business while some in the medium seize category are being strained to the point where they are no more profiting.

“This is largely due to the fact that they are compelled to buy the US dollar with the weak Liberian dollar before they can purchase their goods.” Skyrocketing of the rate has caused local commodities price to swell and has brought unbearable hardship on Liberians, especially those who are unable to afford one United States dollar a day.

By Bridget Milton