Central Bank of Liberia Moves to Control Arbitrary Foreign Exchange Rate Hike
Monrovia – The Central Bank of Liberia (CBL) and the National Association of Foreign Exchange Bureaux of Liberia (NAFEBOL) have agreed to collaborate to help control the arbitrary hiking of the exchange rate by illegal foreign exchange operators and businesses engaged in foreign exchange activities. The CBL and NAFEBOL also spoke of the need to bring sanity in the foreign exchange market and minimize speculation in the market.
In a communiqué signed between the two institutions at the end of a meeting, held Friday, April 6, at the Bank’s head office, it was also agreed that the CBL will begin to work out modalities that will lead to NAFEBOL members benefiting from the CBL Foreign Exchange Auctions as a means of strengthening the Association and make it an important player in the economy.
It was also agreed that the CBL, working along with NAFEBOL, will consider establishing a Joint Task Force that will include the CBL, NAFEBOL, the Liberian National Police, and the Paynesville and Monrovia City Corporations to weed out illegal foreign exchange operators from the streets.
Accordingly, CBL will work with NAFEBOL to bring together smaller “money exchangers” under a more structured arrangement that would allow them to formalize their operations in keeping with the requirements of the CBL and the Government’s Pro-Poor Agenda. The CBL and NAFEBOL have also agreed to hold a meeting with all licensed foreign exchange operators in the country to ensure a wider collaboration with the entire membership of NAFEBOL and other licensed foreign exchange bureaus.
Meanwhile, as part of its efforts to withdraw mutilated Liberian Dollar banknotes from circulation, the CBL will establish a special teller window in the CBL Banking Hall to cater to NAFEBOL members for the exchange of mutilated Liberian Dollar banknotes.
The meeting between the Central Bank of Liberia and the National Association of Foreign Exchange Bureaux comes amidst concerns over the arbitrary hiking of the exchange rate by illegal foreign exchange operators and businesses engaged in foreign exchange activities.
Concerns have also been expressed over the act of arbitrage and profiteering by some businesses as well as the proliferation of illegal foreign exchange operators in the streets which undermines the operations of legitimate and licensed foreign exchange operators.