The Committee on Banking and Currency of the House of Representatives has appealed to International partners through the Central Bank of Liberia (CBL) to assist the country in its recovery program.
The appeal came in the wake of global economic meltdown, which has plagued Liberia with series of challenges.
With the country’s economy experiencing double-digit inflation, with a worsening foreign exchange rate currently at US$1 to L$188, the House Banking and Currency Committee believe that with support from the international community or partners, the CBL Executive Governor Nathaniel Patray can deliver a medium-term solution with a lasting impact for a stable and vibrant economy.
In a release dated Thursday, May 23, 2019, under the signatures of Acting chairman Hanson S. Kiazolu of Montserrado County District #17, and the Acting co-chairman Richard N. Koon of Montserrado County District #11, members of the committee said “it will not be the interest of our country to crave short-term unsustainable solution.”
“We want all Liberians to bear patience as we appeal to our international partners through the CBL to assist in our recovery program, because we are confident that Governor Patray and team, along with our international partners, can deliver a medium-term solution with a lasting impact for a stable and vibrant economy,” the release said.
As for the General Auditing Commission’s (GAC) report on the conduct of the US$25 million mop-up exercise, members of the Committee said their attention is drawn to the “anomalies reflected in the GAC reports,” which they said “can be worked-out to improve the monetary system of the country.”
The Committee said that as Liberians may be aware, the economy has been hit by high rate of inflation and a rapidly depreciating exchange rate; which has motivated the call for structural reform of the economy to address these issues particularly in the monetary sector.
“Above these factors are the L$16 billion investigative reports, and the recent report the General Auditing Commission (GAC) released on the US$25 million mop-up exercise, which has created concerns about the financial sector, thereby impacting the exchange rate to the extent that the Liberian dollar is rapidly depreciating against the United States Dollar.”
It added: “The committee welcomes the outcome of the GAC’s report, which shows that there is no missing money regarding the US$25 million mop-up exercise; a point the Ministry of Justice has upheld in its Press statement release on Wednesday, May 22, 2019.”
The Committee emphasized that the need to correct the systemic control failures spanning several years at the Central Bank, manifested by many discrepancies inadequacy of records involving several transactions.
“Furthermore, we hope to work with Governor Patray, who we believe has begun setting the stage for the proper reform at the CBL and recovery in the monetary sector.”
According to the House Rules and Procedures, the function of the Banking and Currency Committee include, but are not limited to, receiving and making recommendations for all proposed legislations, messages, petitions, memorandums and other matters relating to the work of the committee. Banking and currency include reviewing the country’s monetary policy, regulating businesses, consumer products and services, protective tariffs and embargoes, export and import controls, companies, corporations, concessions and manufacturing firms.