Monrovia – The variance in the exchange rate between the United States dollar and the Liberian dollar is influencing uncertainties in the Liberian market.
Report by Gerald Koinyeneh, [email protected]
Although the Central Bank of Liberia claims it controls the exchange rate, the disparity between the bank’s certified exchange rate and the market rate is massive creating uncontrollable hike in the prices of basic commodities.
The Central Bank’s buying and selling rates circulating in the local dailies on Tuesday, March 4 put the buying rate at L$131.57 to US$1.00; while the selling rate is at L$131.88 to US$1.00.
However, FrontPage Africa has gathered that there is huge disparity of the day-to-day exchange rate on the market.
At different locations in Monrovia and its environs, the exchange rate ranges from L$137/L$1.00 to 138.25/L$1.00. The exchange rate is angering many ordinary citizens and small business owners say it puts their livelihood at risk.
Speaking to FrontPage Africa, they lamented that the continuous depreciation is having negating impact on their businesses and livelihoods and called on the Government through the relevant agencies to intervene in order live by its “Pro Poor Agenda.”
“I don’t think this Pro Poor Agenda will sound good to the Liberian people when we have everything skyrocketed. When someone sits at the back and say I will do XYZ, we want to see the economic policy and strategy that will be put in place to improve the lives of the ordinary Liberians. The policies that will reduce prices should be the foremost concern of the Government. But I don’t see it being Pro-poor because the poor people are in pain,” said Romeo B. Sondah, a resident of Paynesville City.
Since the Weah-led Administration verbally announced its Pro-Poor agenda, it has vowed to improve the lives of ordinary Liberians.
But the Government continues to come under staunch criticisms for not laying out its policy through documented plan and strategy on how it would effectuate the policy.
Critics say, while the CDC-led Government continues to roll out ambitious plans under its Pro-Poor Agenda for the development of the country including the construction of roads and modern infrastructures, ordinary citizens continue to feel the pinch of the uncertainties grappling the economy.
While they appreciate some of government moves thus far, they want the Weah-led government to prioritize stabilizing the economic through the regulation of prices and controlling the continuous depreciation of the Liberian dollar.
“You can be self-sufficient by investing in the agriculture sector. We can have enough to eat and export to other countries. We can depend on Agriculture to help boost our economy,” said Lewis Garsuah or Monrovia.
“Building hospital now is not the solution for Liberia. We need to have a president that will prioritize agriculture. Another solution is to infuse more US Dollars on the market and the rate will drop, as the rate dropping, price will drop along, another step is to pay all government employees in Liberian dollars.
“When this happens, everyone won’t care for US dollars anymore. We need to dollarize Liberia. If we dollarize Liberia, we will live as normal people and there will be no time for US dollars.”
Many retailers say the increase of the rate on the daily basis is hampering our business.
“Even the consumers who come to buy complain a lot. Our economy is slacking. Our traditional commodities are not value anymore. I want the government to embark on agriculture. For any country to prosper, it needs agriculture to boost the economy,” said Richard Saye.
“Our money is less value, because we don’t really have much major exports. I pray for those days to come because it is embarrassing us that are doing petit trade. For now, I am not thinking about buying any goods because of the increase in the rate.”
Others are calling for a round table discussion with importers and major stakeholders in order to formulate policies that will solve the ongoing challenge.
“I appeal to the Liberia Government to see how the rate can come to L$100/US$1 or US$90/US1. With this high rate, we are not benefiting. Scratch card price has gone up to L$145.00. So, the government should sit with the business community and see how well they can address the situation,” added Lloyd Karley, Money exchanger.
Some business owners warned that lesser faire approach in dealing with the economy might lead to major problems – similar ones that affected the Ellen Johnson Sirleaf’s Government.