Forex Bureaus Unite to Quell Illegal Money Changers

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The newly inducted leadership of the National Association of Foreign Exchange Bureaus of Liberia (NAFEBOL) has promised to construct 25 central bureaus across the fifteen counties to help reduce the spread of illegal foreign exchange bureaus in and around the country.

Kelvin Z. Zambola, first president of NAFEBOL, made the disclosure yesterday at the induction ceremony of the officers elect held at the training hall of the Central Bank of Liberia (CBL).

Officers elect include; Paul S. W. Kangar, vice president for Administration, Moses S. Korvah, vice president for Operations, Robert M. Baysah, Secretary General, Nimely Sayeh, Assistant Secretary, Alpha W. Jawo Financial Secretary and Abubakar S. Barry Treasurer.

Mr. Sambola said the leadership will work with all financial institutions and other business entities in the construction of the centers as the association remains a complementing entity to the bank or financial institutions in Liberia.

“It is our desire that the association will enter into a forward contract with business institutions in dealing with the huge demand of United States dollars, since our economy is an import based economy for now,” he said.

Mr. Sambola said due to the poor working capital base, many of the bureaus have expressed interest to arrange a line of credit with banks or financial institutions, which may be drawn at anytime.

“We cannot over emphasize the problem foreign exchange black markets pose to the bureau operators. There is a large overhead cost attached to bureau operators but not limited to the rent payment for business premises, employees’ wages, cost, taxes, license renewal fees, minimum deposit requirement among others,” Mr. Sambola said.

On the contrary, he said, the foreign exchange black markets do not have overhead cost and discount for anything. This may inject into the economy problems that cause price hiking.

Serving as the guest speaker, the Central Bank of Liberia (CBL) Deputy Governor for Economic Policy, Boimah S. Kamara, described NAFEBOL as a critical sector to the economy and pledged the CBL’s support to working closely with the leadership to ensure a better economy.

“NAFEBOL remains an active, important partner within the micro-economy of this country. The association’s presence is key toward attaining the stability goal, which we referred to as stability, price stability or exchange rate stability. Usually the economy of the country is highly driven by cash and you control the cash outside the bank,” he said.

He said the association remains a key driver in helping the bank to engage into the conduct of monetary policy, especially the central bank.

Mr. Kamara urged the leadership to focus on strengthening the membership and working together in unity to ensure that the aim of the association is realized to its fullest.

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