‘Work for Single Liberian Currency Regime Begins 2019’

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Governor Patray promises single currency regime.

-CBL Gov. Patray

Central Bank of Liberia (CBL) Executive Governor, Nathaniel Patray, said that the Bank under his leadership, together with the Ministry of Finance and Development Planning (MFDP), will in 2019 commence work with the Legislature and other stakeholders on a revised framework for de-dollarization to revert to a single Liberian currency regime.

Patray told the Senators during his recent confirmation hearing that several policy measures would be carried out in 2019, under the Bank’s medium-to-long term policy measures.

Under those policy measures, Mr. Patray said the CBL will work with the Legislature on Export Proceeds Repatriation Law to ensure regular and constant flow of foreign exchange in the economy, and by extension increase the supply of foreign exchange in the economy.

The CBL and MFDP, Governor Patray promised, will work with the Legislature to introduce new banknotes to replace the existing one with a uniform family of banknotes; that the Government of Liberia (GoL) will be encouraged to invest in critical infrastructures such as roads, electricity, rule of law, and enforcement of property rights that promotes diversification.

He said the GoL through the ministries of Finance and Development Planning, Agriculture, Commerce and Industry, and the CBL should develop a value chain around agricultural output to stimulate domestic production, income generation, and employment.

Speaking further to members of the Senate Committee on Banking and Finance, Governor Patray underscored the need for GoL through MFDP, CBL, the National Investment Commission and the Ministry of Commerce to initiate a strategy to invest in the actualization of the Special Economic Zones to encourage domestic manufacturing in the economy.

As for price and broad exchange rate stability, Governor Patray said this “will remain the CBL’s major goal, and apart from the goal mentioned, the CBL will work with other GoL’s stakeholders to recognize a number of other economic goals, including economic efficiency to achieve the maximum fulfillment of wants using the available productive resources; economic freedom to guarantee that businesses, workers and consumers have a high degree of freedom in their economic activities.”

Other economic goals the CBL intends to take, according to Governor Patray, includes bringing about equitable distribution of income to ensure that no group of Liberians faces stark poverty, while others enjoy extreme luxury.

He named some of the goals as providing economic security for those who are ill, disabled, handicapped, laid off, aged, or unable to earn minimal level of income; and to carry on a balance of trade to seek a reasonable overall balance with the rest of the world in international trade and financial transactions.

13 COMMENTS

  1. The comments by new CBL boss sounds as though he is the Minister of Finance, Planning Economics. These suggestions go beyond the scope of the Central Bank governor. Notwithstanding the suggestions are relevant and a step in the right direction.

  2. He spoke with authority over what he knows best. His statements likewise shows that he has more understanding when it comes to the functions of the MFDP.

    Thanks dude. Let’s talk and do.

  3. This new CBL governor is sound financial person. He knows the job even more than your Finance and Development Planning Minister. All your need to do is try his ideas and see and stop talking about he doesn’t have the authority. We are not looking at power here but knowledge to help our nation. Do you know knowledge is power? We don’t need people from big schools with degrees and won’t do shit to help our country. We need ideas to fight the situation we are faced with as a nation. Where we find ourselves now is about putting ideas together for us to develop not power and authority.

  4. It only requires a few simple steps to return Liberia to a single currency nation but, it would also require a few economic policies and economic cycles:

    1) Start by baselining back to the USD
    2) Control the movement of the USD out of the country by legislating and implementing monetary policies that put a strict limit on the exact amount of money that can be transferred out of the country by any business or individual during a three-month period (quarterly). Each transfer MUST be approved by CBL, Ministry of Finance, and the Ministry of Commerce — Businesses and individuals must fill out specific forms and those forms must be approved by each of the three government entities before any bank can transfer monies out of Liberia. Any bank that violates this process must pay 1.5 times the amount of money transferred out of the country or face business closure.
    3) Once the monetary policy above had been proven to be effective (within, at least six months); the government should be ready to revert to a single Liberian currency. This new currency should be printed with the consent of the Banking Committee of the Liberian Senate, CBL, Ministry of Finance, and Ministry of Commerce. As the new currency goes into effect, the monetary policy I laid out above should be further revised to increase the restriction on movement of USD and the new Liberian currency. Here is one of the kickers; ALL government officials MUST save at least half of their annual income in Liberian banks every year, no exception!

    ***
    Every company that is awarded import license for stable commodities, like rice and fuel /hydrocarbon, must provide proof that they can stock supplies of these goods for a minimum of three months. This tactic would avoid acute shortages of these commodities on the Liberian market.
    ***

    This is my contribution to the Pro-Poor government and the people of Liberia.
    You don’t have to use my suggestions but if you know something about Economics, you’ll probably wanna read my comment twice before asking questions or thrashing my idea.

    All Hail, Liberia Hail..

    • Your plan with regards to money transfers will introduce burdensome red tape and create a new source of corruption/bribery for businesses trying to import goods into the country. That will certainly slow trade and GDP. Okay so you print new bank notes and what have you, does the CBL allow the exchange rate to float or peg it at some value to the USD? You didn’t address that. We don’t have capital markets. Do we create one? Also, the $LD is only good in Liberia. How does that impact its value? I believe a single currency is good, but it should be done over a period of years and it should be carefully studied beforehand or it could cause massive volatility in the economy. The GoL should invite international experts from the world bank, IMF, and even top economists from Harvard or other top institutions to advise them. We just don’t have the expertise to do this ourselves – it’s very complicated.

      • Also, Liberia owes loans to institutional institutions and those loans could become very expensive to service if after the switch to single currency causes the $LD to significantly decrease in value. The government will have to print more money to buy USD and that will make matters worse…

  5. Immediately recover all the Liberian currencies in the universe, balance with foreign currencies and see. We know you might think it aint worth shit but we need them to eat Liberian food and produce, invent Liberian products. We have our own numbers now. I am not giving you my United States Dollars until you exchange for Liberian money (any type)
    Be sure your numbers will not work for the silent majority. I got my own Numbers. Do not answer my box. Tell the Liberian people.

  6. Brother Patray, spoke as someone with authority in the Banking and Finance world. This Brother has a PLAN which he laid out at his confirmation. If you are an Economist or a Liberian who, shares his views please work with him regardless where you are. Please do not compare this Brother with other Financial Leaders in Liberia, he has stated clearly that he will work with them. If you have nothing to offer, SHUT UP. The Brother said the Process will begin 2019, please Liberian People help the Brother SUCCEED.

  7. I got my own numbers for 2020. Bring yours and I will exchange it for mine. Why should the legislature interfere with the special drawing right of the Executive. They should sifter past tyrannic decrees and be making laws that make sense to the Liberian people; not minting or printing currencies. It is the sole responsibility of the President of Liberia to balance the flow of the Liberian monies in coherence with the contractual acceptance of the Governor of the Central Bank as now confirmed these days by the senate. Ways and means to corrupt public finance brought such mandate. Each branch of government should stay within its functional limit. Authority is delegated. Responsibility is not. Let the Governor handle Liberia’s currency plan for 2019 while the President implements platform presented to the Liberian people until 2024, next election. The silent majority is still in control with 57%. This President though got more of the voters in attendance just as the last, got 34% of registered voters. Do not reply my box. I only accept Liberian dollars for my United States Dollars. Let the Liberian people know. Gone to silence.

  8. I am proof that Malachi Z. York is telling the truth in his books in reference to Tammuz. I am Christopher Noel Brown born 12-25-1972.

    • I should be the one who judges Malachi Z. York. He has prepared the world for my coming. I am the Adonai he writes about having 19 letters in my name also the sum of my date of birth adds up to 19 and the year of birth adds up to 19 and I have 19 letters in my name. Do not count the B. It is not a letter but is the number 13. Please honor my request so I may help many stop supporting that which can not help themselves.

  9. The Liberian nation rates its, any inaugurated President based on the promises platformed to the people prior to election. Speeches and actions taken after installation in the Presidential circle are responsive because the chair is already delegated by its constitutional provisions. Not with standing, the Executive bears own consequences from legislation of both houses equally by Liberian votes in each respective chamber depending on the level of irresponsibility exhaled in the making of the law. As long as lawmakers can confess the sense of required majority enshrined in its actions, sentiments become the power to be legislated. Thus the politics of wastes mean nothing to the Liberian people but lies. It has been proven in Liberian traditional historic regulatory settings, regardless tribal or ethnic backings, that sentiment is more powerful than law. We see this now in the gross difference between sports and politics at the end of 2018 county meet in Monrovia or world cup in Moscow. The people of Liberia will continue to hold the ones they elect in all parties responsible for the promises they made to them. If You got Liberian money, welcome. Do not answer my box. The Liberian people will be told.

  10. Hon. Patray experience of Banking, Economics, & functions of the MFDP , is excellent. I worked with him 1980-1981 when CBL was NATIONAL BANK. I immigrated to U.S.A 1981. He was a Economics Research Manager. He later became Deputy Governor. He is a first class brother. Thank you GOD for bringing him back home. (CBL). Since 2005 – 2018 ,he was giving his business, economics & finance knowledge to pupils at CUTTINGTON UNVERSITY. He is my friend & mentor. I knew this day would come. THANK YOU GOD !

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