The Central Bank of Liberia (CBL) has warned individuals and businesses involved in the hoarding of Liberian dollars to desist or face punitive measures.
The warning by the CBL comes in the wake of a disclosure by agents of the bank that some individuals and businesses are operating outside of the banking system.
The bank, in a release, said those involved are hoarding large volumes of currency, especially Liberian dollars.
Some of the hoarders, CBL said, are using their cash hoards to adversely and artificially impact the exchange rate; actions, which according to the bank, have the propensity to be interpreted as ‘economic sabotage.’
This unwholesome practice by such individuals and/or businesses, a CBL press release said, undermines the integrity and soundness of the banking system and the economy as a whole.
The CBL is therefore warning those involved in hoarding currency to immediately desist, adding, “the public at large has also been urged to take note of the warning as the CBL will be taking appropriate actions to penalize violators.”