By Calvin Brooks
MONROVIA (LINA) – The Executive Governor of the Central Bank of Liberia (CBL), Dr. J. Mills Jones, has cautioned that any attempt to restrict the dual currency regime currently in place will worsen inflation in Liberia.
Governor Jones made the statement Friday night at a dinner to climax a week celebration organized by the Liberia Bankers Association at the Monrovia City Hall.
Jones observed that countries which have minted their own currencies are faced with serious inflation problems as a result of the unfavorable exchange rate of their currencies against foreign currencies, particularly the United States dollar, Liberia he said was no exception.
He said the CBL is not printing the United States dollars or other foreign currencies, so these currencies must be earned through a level of productive venture, in regards to its export base.
Dr. Jones stressed that that CBL has intervened in the Liberian currency exchange market with US$71.65 million infusion into the Liberian economy to contain inflation and stabilize the foreign exchange rate in the country. He emphasized that a single currency, particularly the Liberian dollar, circulating in the economy will not stabilize inflation as people expect.
Meanwhile, the president of the Liberia Bankers Association, John Davies has said to ensure financial stability in the Liberian economy, money borrowers should develop good credit culture.
He said the banking industry is crucial to the economic growth and development of Liberia, noting that the banking industry has pumped US$38 million into the Liberian economy to provide access to credit.
Davies said the banks will continue the ‘naming and shaming’ of creditors who are defaulting on loans payment, calling them ‘a detriment to the banking industry’ in the country.