By William Selmah, wselmah@gmail.com
Amidst the worsening economic situation, the Senate in Liberia has invited the economic management team of the CDC government to provide update to that body on the status of the country’s economy.
As prices of basic consumer goods continue to skyrocket, whilst the value of the Liberian dollars continue to fall against the US dollar, the average Liberian family can hardly get one proper meal a day.
It was against this backdrop that the Senate took the decision during its Tuesday’s plenary session following a communication from Maryland County Senator Gblehgbo Brown.
In his letter read during the session, Sen. Brown underscored the need for the team to explain the state of the country’s economy and why the value of the Liberian dollar keeps dwindling and at such rapid rate.
Liberian Senate in session at the Capitol Building in Monrovia
Despite ongoing probe into the whereabouts of over 15 billion newly printed Liberian dollar banknotes, the Senate also stressed the need for the government’s economic management team to provide update on the subject when the financial and economic management team appears during the next session of the Senate.
A written report is also being requested on the impact of the 25 million US dollars recently infused into the economy to stabilize the exchange rate.
The economic and financial management team is to appear with a matrix showing to whom the US$25 million were disbursed to as part of austerity measures to strengthen the Liberian dollar.
Back in July, President George Weah announced the immediate infusion of US$25 million into the Liberian economy to help stabilize the exchange rate in the volatile money market.
Despite the promised infusion of the 25 million US dollars to mop out the liquidity crisis on the financial market, that move has done little or nothing to help ease the inflation situation.
“These measures will include, but not be limited to:
- An immediate infusion by the Central Bank of US$25 million into the economy to mop up the excess liquidity of Liberian dollars.
- A mandate to the Central Bank to provide more effective supervision and regulation of money changers or foreign exchange bureaus.
- A mandate to the Central Bank to provide more robust oversight of banks under its supervision.
- Conduct a comprehensive review of regulations on the hoarding of both Liberian dollars and U.S. dollars outside the banking system, and provide incentives and safeguards to encourage the utilization of the banking system, including financial instruments,” the President told the nation,” the Liberian leader announced.
Liberia saw a rapid decline in the value of its local currency and a corresponding rapid increase in the prices of basic commodities and services at an unprecedented rate few months ago.
That coincided with the removal of the containers of alleged missing billions of freshly printed Liberian dollar banknotes, which has sparked huge outrage among the Liberian people.
The CDC government had earlier confirmed reports that more than 15 billion Liberian dollarswent missing in thin air after they arrived in containers and bags at the Freeport of Monrovia and the RIA.
This prompted the government to announce that it was infusing