New Monetary Policy Soon -As CBL Transitions From Exchange to Interest Rate Regime

The Central Bank of Liberia (CBL) has announced the adoption a new monetary policy regime aimed at transitioning from an exchange rate targeting framework to interest rate-based framework, which the back said requires huge foreign exchange holdings of the CBL, called International Foreign Exchange Reserves, the Executive Governor of the Central Bank of Liberia (CBL), Hon. Nathaniel Patray, III disclosed.

Governor Patray said by adopting the new monetary policy framework, CBL will start using interest rate as its key monetary policy instrument, to control inflation and bring down the high prices of goods and services in the Liberian economy, noting that the current high prices of commodities, especially food, is significantly affecting the poor people, which is something that the CBL is not happy with.

At present, CBL’s exchange rate targeting policy has involved keeping the exchange rate generally and broadly stable in the short-term, because of the significant impact of Liberian dollar depreciation on domestic prices. But, given the current low inflows of foreign exchange into the economy, the CBL has decided to change its monetary policy framework to a new regime, the CBL boss noted in a statement issued July 19, 2019.

The Executive Governor of the Central Bank of Liberia (CBL), Hon. Nathaniel Patray, III, made the announcement recently when he launched the CBL Economic Forum. He said, by adopting the new monetary policy framework, in the medium term interest rates will serve as an effective channel of monetary transmission.

Executive Governor Patray said the success of the new monetary policy framework will require the development of financial markets (money and capital markets, which are currently at a low level of development in the country. He said the new policy framework will prepare CBL to adopt inflation targeting in the long term, something that is consistent with the global trend and the convergence criteria for the ECOWAS Monetary Union.

“The new CBL monetary policy re-affirms its independence, consistent with the recent pledge made by President George M. Weah when he told a World Bank team that recently made a courtesy call on him that he will continue to uphold the independence of the Central Bank of Liberia as it endeavors to resuscitate Liberia’s economy. At that meeting, the President said that the Government has taken the decision to stop all future borrowings from the CBL in an effort to stabilize the economy and bring down inflation,” Executive Governor Patray explained.

The CBL Executive Governor said although inflation, to a large extent is a monetary phenomenon, it requires the collective efforts of all key stakeholders to fight it.   “As enshrined in the Pro-Poor Agenda for Prosperity and development (PAPD), the key role of the CBL is to promote price stability, in concert with all stakeholders, which is critical in ensuring a conducive macroeconomic environment”, the CBL Executive Governor said.

The recently launched CBL Economic Forum is aimed at creating public awareness and understanding about CBL monetary policies and regulatory functions and promote public feedback on such policy, thereby creating transparency and renewing confidence in the CBL. The forum is also intended to engender public debates about topical and trending economic issues in Liberia and exploring the public views on such economic issues for better policy formulation.

12 Comments
  1. PeterHed says

    продажа аккаунтов соцсетей услуги по продаже аккаунтов

  2. Randalensus says
  3. Zacharyjab says

    purchase ready-made accounts account market

  4. Thomaswax says
  5. buy-accounts.live_Dog says
  6. kupit-akkaunty-market.xyz_Dog says

    продажа аккаунтов https://kupit-akkaunty-market.xyz

  7. ad-account-buy.top_Dog says

    buy a facebook account https://ad-account-buy.top

  8. buy-ads-account.work_Dog says

    facebook accounts for sale buy a facebook ad account

  9. buy aged google ads accounts https://ads-agency-account-buy.click

  10. tiktok-ads-account-buy.org_Dog says

    buy tiktok business account https://tiktok-ads-account-buy.org

  11. Life Experience Degrees says

    There are certainly a variety of particulars like that to take into consideration. That may be a nice point to convey up. I supply the thoughts above as common inspiration however clearly there are questions like the one you convey up the place the most important factor will likely be working in sincere good faith. I don?t know if best practices have emerged round things like that, but I am sure that your job is clearly recognized as a good game. Both boys and girls feel the influence of only a moment’s pleasure, for the rest of their lives. Life Experience Degrees

Leave A Reply

Your email address will not be published.