Monrovia – As the Liberian dollars continue to depreciate against the United States dollars on an unprecedented scale, many Liberians say life is becoming unbearable for them.
Report by Gerald C. Koinyeneh, [email protected]
Speaking to FrontPageAfrica, the citizens, mainly small and medium-sized business owners, lamented that they would soon go out of business if government does not address the situation.
“The increase in the US rate is causing chaos for us, the small business people,” said James T. Ballayan of Watch Tower Community in Paynesville.”
“Our suppliers don’t want to accept the Liberian Dollars from us anymore.”
“They either tell us to convert the Liberian Dollars to United States dollars, or they imposed high exchange rate on us. We are selling to only eat these days; not to save.”
Augustus Jacobs, who co-owns a gas station, echoes Ballayan’s statement:
“We are no longer selling for profit. The high US rate has crippled our business.”
“Before, we used to buy our goods from LPRC (Liberia Petroleum and Refining Company), but since the rate went up, we can no longer buy from there because they don’t receive Liberian Dollars, only United States Dollars.”
Jacobs explained that because of the situation, they are now thinking about closing down their business.
Meanwhile FrontPage Africa has gathered that most businesses (mainly wholesalers) and some private schools do not accept the Liberian bank note in their transactions.
Marbay Diggs, a retailer who sells pig feet at the Red Light General Market, said although she sells her goods in Liberian Dollars, her suppliers only accept US dollars.
“To be able to get goods, I have to change all these money (Liberian dollars) to US dollars; more often at a higher rate. At the end of the day, I don’t get any profit. I can’t understand the business this time at all,” Diggs lamented.
Marbay’s ordeal was echoed by Christopher Gweh, a motorcyclist in Paynesville.
“Our story is sorrowful. We do not transact with our customers in United States Dollars; yet to buy a motor bike, we have to pay in United States Dollars.”
“If we don’t have the US Dollars, then our suppliers demand a very high rate. The situation is very troubling,” Gweh lamented.
A parent (preferred anonymity) of a child, who attends the Isaac A. David Sr. Memorial School in Paynesville, told FPA she afraid that her child may be put out of school because of the school’s policy of not accepting the Liberian Dollars.
She said the process in finding the United States Dollars is getting harder as the buying rate continues to increase day by day, and it is now US$1.00 to LD$108.00.
“The school my son attends doesn’t have a Liberian Dollar account.”
“So I am finding it difficult to get the United States Dollars. As the rate continues to climb sky high, I fear that my son will be put out of school if I don’t pay his fees on time,” the parent said.
With these concerns, there are now increasing concerns that businesses are vehemently refusing Liberia’s legal tender.
Momolu Karneh, a commuter, blames the situation on the failure of the government to make sound economic policy.
“The government is weak,” Karneh asserted.”
“Why would a business entity or an institution refuse to transact with the legal bank note which was issued by the government, and you the government sit there and do nothing?”
“The government has now given the freedom to everyone to do anything they feel like doing; even when it is at the detriment of others. I just paid LD$100.00 from Broad Street to Red Light. Maybe tomorrow, I will pay more than that.”