CBL Announces Steps against Exchange Rate Fluctuation

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The Central Bank of Liberia (CBL) says it is keenly aware of the current exchange rate volatility between the Liberian dollar and the US dollar and is exerting all efforts at its disposal to ensure a stable exchange rate.

In the immediate term, the CBL is taking steps to address the volatility by implementing various initiatives including mopping up excess liquidity by issuing Treasury Instruments with attractive high yielding interest rates and will compliment these Treasury Instruments with high yielding CBL bills as well, if required, the Bank said in a press release yesterday.

The CBL intends to increase its frequency and volume of interventions in the foreign exchange market through its auction mechanism. These enhanced measures will commence in the first week of July, according to the release.

The CBL once again warns those who will attempt to take advantage of the prevailing volatility for profiteering to desist from such unwholesome activities. The bank will, therefore, reinforce its monitoring mechanisms to ensure that illegal foreign exchange operators and local currency hoarders do not use the current volatility in the Liberian dollar exchange rate to the detriment of the Liberian people.

In conclusion, the CBL reaffirms that its monetary policy stance will continue to be aimed at achieving low inflation and broad exchange rate stability.

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