Monrovia – Many Liberians are complaining about the astronomical increase in the exchange rate between the United States dollar and the Liberian dollar.
Report by J.H. Webster Clayeh – [email protected]
Some are blaming the inability of Central Bank of Liberia for failing to regulate the exchange rate while other are blaming of export carry on in the country.
FrontPageAfrica has been getting views from Liberians.
Nimely Sayeh, Assistant Secretary General National Association of Foreign Exchange Bureau of Liberia:
“The increase in the US rate causes me no problem because I am a middle man between the public and the commercial banks.
For the issue of the rate, government -mainly the Central Bank of Liberia needs to put their feet down. We have lot of illegal money exchangers on the market that CBL needs to look at. Several times we met the CBL considering this whole rate issue and when we gave our little advice they don’t work toward it.
But the rate can be control without the import and export in this country; the CBL is the problem.
In other countries, people deal with foreign exchange bureau to transact foreign exchange business.
I am licensed to do money exchanger business and when government comes out with their rate our rate can be different from government own.
All of the rates that are out are speculated rate, in Paynesville I saw it 110, so if I am here now and saw it 110 on that other side I have to increase my US rate. So, all the rates you see on the market are all speculated rate.
Well, the CBL has to get on the field and take the money exchangers from on the side walk and allow only we that are license money exchangers to do the business, in that it is going to stabilize the US rate.
The major importers cannot cause the problem of this rate; CBL got certain time that they give out auction to those business people.
The US dollars these people want we that are doing the money exchange business cannot give it to them, so they are not the cause for the US rate problem.
The US rate is not causing things prices to be increasing, it is the government own tax that they increase.
Now I can exchange more money than before, so it causes me no problem. Right now I am changing 110 to one US dollar.”
Henry K. Varsen, a graduate of the University of Liberia:
The high US rate is causing problem for the ordinary people and the reason is we as a country take almost all of our things from outside of the country, we are not producing anything much in the country.
Nearly, 90% of what we consume are being imported and we are not really exporting so you will find out that the masses are suffering. I don’t see reason why some somebody will be blaming the Central Bank of Liberia.
I am a student of economics, there is no easy way you can blame the CBL becuase we get something in economics that say the market forces determine the market price, base on that, the CBL does not have a reserve on that.
The only thing the CBL is doing to cutail the problem is the remittence they are talking about, twenty five percent of money that will be coming from oversea to be given in our currency.
These are measures that the CBL is working with through the monetary policy along with the Finance Ministry which control the fiscal policy will also work in line with the CBL but to say you will blame the CBL we don’t have reserve because we are not producing.
If we were producing here, the money we spent on goods and services will be spent here and will be invested here and at the end of the day our economics will grow.
Dekontee Tokpah, petty trader:
The US rate is affecting us badly; we cannot understand our business. When you go buy everything price is up. When we sell we cannot get profit. When the US rate was not high we use to get seven hundred profits but now we can get three hundred profit and we got to eat and drink before the end of the day nothing will leave in our hands.
We are just selling for the store people. Before, I used to buy my goods for LD$1,000 at the rate of US$10 [LD$1,000 to US$10.00], but now I am paying LD$1,150 for ten United US$10.00 in the store when I go buy my goods.
I have been selling this business for four years now and the profit I get from here I am able to send myself to school but now things are getting so hard for me.
Travis Edwin Wlue Jr, a student at Stella Morris Polytechnic
The US rate is creating hardship for low income earners. It is also creating the increase in prices and the petty traders are finding it difficult to do their business because every day the US rate continues to climb high.
It is creating a lack of price control; today the price is this, tomorrow the price the other way. We should put more value on our own currency then this whole thing about the US rate will not be a problem.
The government should be paying employees in Liberian dollars and also the collection of taxes should be in our own currency and lastly our national budget should be done in our currency.
Also, people who are receiving money from oversea should be getting Liberian dollars from the bank.
Once the government put into place such measure you will find out that the value of US dollar will depreciate and the Liberian dollar will appreciate.
Melvin S. Doweh, a Representative aspirant of District #12, Montserrado County:
The current situation of the high US rate is detrimental to the living condition of the ordinary Liberian which happens to affect the goods and services in the country.
My surprise came when the price of a bag of water went high and became scare on the market. This is a practical example of the effects on the increase of the foreign exchange rate.
Therefore, I want to add my voice to the many voices to call on all financial institutions in the country, precisely the Central Bank of Liberia to institute proper and possible economic policy and measure in view of regulating the exchange rate, as the means of creating a perfect and accessible market system.
Holistically, many people will place the blame on the national government because they are the major providers and regulators of the economic system.
So, as per my recommendation to national government, it will highly be appreciated where they to adhere to these public outcries from the citizenry as the mean of insuring changes to transform the lives of the ordinary Liberians from the current economic status if Liberia must take a forward march.