MONROVIA, LIBERIA-The Central Bank of Liberia (CBL) has issued Communiqué Number Five on Monetary Policy for Liberia.
The Board of Governors of the Bank has resolved to maintain the Monetary Policy Rate of the Country at 25.0 %, as an indication of its tight Monetary Policy stance on both current and medium term inflation objective.
The Bank’s decision is predicated upon developments in the global and domestic economies in Quarter Three, the projection headline inflation for Quarter Four, coupled with the high volume of currency outside the banks of Liberia.
The CBL wants Commercial Banks restructure loans, especially performing loans prior to COVID-19, to support the economic recovery process and promote financial stability.
Issuing the Communiqué Thursday, November 19, 2020, in Monrovia, CBL Executive Governor, Aloysius Tarlue, said:” The Liberian Dollar compared to the United States Dollar at the end of September 2020, appreciated by 4.5 % to 13.5 % respectively.”
He attributed the appreciation of the Liberian Dollar to tight monetary policy stance of the CBL.
Executive Governor Tarlue underscored non-performing loan as a challenge for banking institutions for Quarter Two of 2020.
By: Victor Kezelee