Monrovia – Mr. Nathaniel Patray who is expected to soon take over as Governor of the Central Bank of Liberia has warned operators of forex bureaus and street money exchangers not to publish exchange rate on boards or placards in the streets.
Report by Bettie K. Johnson-Mbayo, [email protected]
He sent out the caveat on Wednesday at the Central Bank during a consultative meeting with the vendors.
“All rates should be displayed inside the bureau; we know that if you went to a forex bureau you will see that each individual has his own rate. The rate that is published in a bureau should be used by all money changers within the bureau,” he said, warning that the Central Bank would prosecute violators.
Patray called on the vendors to legalize their status with the Central Bank of Liberia or risk closure.
The Liberia National Police, Liberia Immigration Service, Monrovia City Corporation will begin the enforcement of the bureau exchange regulations, he said.
“The enforcement will entail the closure of unlicensed forex bureau from the street, removal of all illegal forex exchange operators from the streets, confiscation of monies belonging to illegal operators,” he said.
The plan, according to him, is aimed at implementing every necessary complimentary measure that will help reduce the amount of currency on the market and outside the banking system and by extension broader exchange rate stability over a period of time.
He disclosed that the currency in circulation currently is L$17. 029 billion, L$15.242 million is outside the banking system and L$1.7 billion in the vaults of commercial banks.
The newly appointed Governor Nathaniel Patray [not confirmed by Senate yet] said beginning August 31, 2018 all licensed foreign exchange bureaus would be required to submit monthly returns as prescribed by the CBL reflecting their monthly purchases and sales in line with forex bureau regulations.
He ordered that beginning Friday, July 20 and every other Fridays till otherwise, all forex bureaus would be required to declare their operational fund in both U.S. and Liberian dollars.
According to him, the Economic Management Team has directed all commercial banks to open a special window for forex exchange bureau operations from 2pm to 3pm to allow them to operate.
Speaking to the vendors, Deputy Minister for Fiscal Affairs, Samora Wolokolie, said the government sees money exchangers as a major partner, but noted that policy and measures need to be strictly adhered to.
“We must see this confrontation as the Ebola crises, we need the fullest cooperation – you will not be comfortable but all these things are done to bring relief to our people,” he said.
Finance Minister Samuel Tweah told the vendors that the uncontrolled circulation of U.S. dollar is causing problem for the economy.
“This is a fundamental structures problem; we will begin to see the symptoms of depreciation. The real solutions will come two-three years; we say let look at the monetary policy, do more regulations, you have to help the government,” he said.
According to him, there’s the need to stabilize the large amount of money that is outside the banking system. “So we need the information, if you know anyone who is keeping large money come and tell the police because we will not allow anyone to compromise the government.”
For his part, the Inspector General of Police, Col. Patrick Sudue warned operators of forex bureaus to desist from hoarding both the Liberian and U.S. dollars. He asked them to inform the police of individuals involved in counterfeiting.