Monrovia – President Ellen Johnson Sirleaf says the government may be constrained to increase the level of domestic expenditure in Liberian dollars and that it is likely to affect the salary payments for all employees of government.
In a communication to the legislature she said currently, the level between Liberian Dollars and the US Dollars is 20% to 80% percent respectively for salaried Presidential officials and uniform fifty percent for the general Civil service.
“By this measure, we will be increasing the ration of payment made in Liberian Dollars for salaries, goods and services including payments to contractors and leasors.”
The President said the reason for this decision is due to the end of the fiscal year which has seen the sudden increase in the intake of Liberia dollars.
“This is also due to the fact that it has become necessary to increase the sale of the United States Dollars to the Central Bank of Liberia to restore their reserves to required target level as agreed with the International Monetary Fund.
“Operating a dual currency regime with the United States and Liberian dollars as legal tenders, fluctuations in the exchange rate greatly affect the prices of basic commodities that are mostly sold in Liberian dollars but traders have to purchase in United States dollars on foreign markets.
“To compensate for the loss in value in the Liberian dollars when exchanged to United States dollars, traders increase the prices of their commodities, leaving the consumers to feel the pinch.”
While the Liberian dollars continues to depreciate against the United States dollars, the House of Representatives has endorsed President Ellen Johnson Sirleaf’s request to print additional bank notes.
The House in April 2016 voted in favor of the President’s request after the Committee on Banking and Currency chaired by Representative Julius Berrian (CDC-District #10, Montserrado County) submitted a report to plenary.
Henry Karmo (0886522495) [email protected]