CBL Warns Illegal Money Exchangers

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Pres. Weah: "Our currency is in free fall, inflation is rising and... our foreign reserve is at an all-time low." (Above: Forex Bureaus around Monrovia show the exchange rate well above L$130/US$1. )

The Central Bank of Liberia (CBL) has warned that all illegal money exchange operators and businesses engaged in foreign exchange activities in the country have up until Tuesday, May 1, 2018, to regularize their status or risk confiscation of their money and/or shutting down of their businesses.

In a press release, the CBL said a Joint Task Force, comprising the CBL, stakeholder government agencies, the National Association of Foreign Exchange Bureaux (NAFEBOL) and law enforcement officers will begin a rigorous campaign in May 2018 aimed at weeding out illegal foreign exchange operators.

The Bank is advising all illegal money exchangers and other businesses concerned to take the necessary steps by having their businesses duly registered and licensed by the CBL to deal in foreign exchange business in order to avoid embarrassment.

CBL said the Bank is working with NAFEBOL to bring together smaller “money exchangers” under a more structured arrangement that would allow them to formalize their operations in keeping with the requirements of the CBL and the Government’s Pro-Poor Agenda.

All those concerned are advised to take due note and act accordingly, as the Joint Task Force sets out as of May, 2018, to begin removing illegal foreign exchange operators from the streets.

In addition, the Bank will work with the Ministry of Commerce & Industry to monitor businesses violating the foreign exchange laws of the country by operating as unlicensed foreign exchange dealers.

 The move by Central Bank of Liberia (CBL) comes amidst   concerns over the continued arbitrary hiking of the exchange rate by illegal money exchangers and some businesses despite repeated warnings by the CBL cautioning those involved to desist.  The action by these unlicensed money exchangers, the Bank noted, is in direct violation of regulations governing the Foreign Exchange transactions in the country, the new Financial Institutions Act of 1999 and the CBL Act.

These unauthorized money exchangers continue to undermine the CBL’s efforts to help mitigate exchange rate volatility, thereby resulting in the escalation of the prices of goods and services on the Liberian market which is significantly contributing to the hardship on the ordinary Liberian people and is counterproductive to the Government’s Pro-Poor agenda.

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1 COMMENT

  1. Dolar to dollar-

    The Central Bank “illegal money exchange” or foreign money exchange solutions is to make Liberian’s dollar to dollar of any foreign currency that comes into the country; it may be, US dollar, or UK 1 pound it should be equivalent to Liberian’s dollar and any other money for that matter. This is the idea that the late president Tubman used when people used to referred to Liberia as “little america”. This idea help Liberia in the past to attract foreigners from all over Africa to come and work in Liberia because everyone wants the US Dollars and the British pound; therefore, many people came to Liberia to worked and invest in Liberia economy. If, this same idea can be repeated then Liberia will attract investors and many African will come to work in Liberia. Why will Liberia money be of no value and in Europe or the US and the UK and when their money come to Africa or Liberia then we valued their money over our money. Are they telling us how to govern our country? We have to decide and take the broad step and stop this. When we stop this act of valuing foreign money over our currency then Africa will economy will booms and then we wouldn’t be talking about what people are doing with illegal foreign currency in Liberia.

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