By Bill W. Cooper
The Executive Governor of the Central Bank of Liberia (CBL), Henry Samoa has revealed that the country’s inflation rate, which peaked at 10.2% earlier this year, has eased to 8.2% as of November.
Governor Samoa disclosed that it is due to stable food prices and a steady exchange rate due to a contractionary monetary policy the Bank has instituted, and asserted, “While economic activity remains strong, real GDP growth is projected at 4.8% for 2024, down from the projected 5.1%.”
The Governor spoke recently when he, along with his team, updated the Senate Banking and Currency Committee on the economy and financial sector in keeping with Part II, Section 4(3) of the Amended CBL Act.
Governor Samoa, however, outlined the measures taken to combat rising inflation, which he said, “We are pleased to report that our efforts to stabilize the economy are yielding positive and real results.”
“The inflation rate, which reached alarming levels earlier this year, has shown a significant decline, thanks to our strategic monetary policies and the stability of our exchange rate and food prices,” he maintained.
The CBL Governor also emphasized that the stabilization of food prices has played a crucial role in the recent decline in inflation, and asserted, “Our agricultural sector has shown remarkable resilience, and we have seen a steady supply of essential food items in the market.”
“This stability has helped to alleviate some of the inflationary pressures that consumers were facing earlier this year, and the Bank’s efforts to maintain a steady exchange rate have also contributed to the easing of inflation.
By managing the money supply and implementing measures to strengthen the Liberian dollar, the Bank has been able to create a more predictable economic environment because a stable exchange rate is vital for our economy, as it helps to control import costs and provides certainty for businesses and consumers,” he noted.
Samoa furthered, “While we are encouraged by the recent trends, we must remain vigilant. Global economic conditions, including fluctuations in commodity prices and potential supply chain disruptions, could still impact our inflation rates.”
Meanwhile, in response to recommendations from the General Auditing Commission (GAC) in the CBL Compliance Audit released last year, the Governor announced a new policy to enhance operational efficiency.
He added, “Effective immediately, cash transactions over the counter will be limited to US$25,000 for designated employees, with individual transactions capped at US$5,000. This policy prevents multiple check cashing over the counter on the same day.”
Governor Samoa then reaffirmed the Bank’s commitment to continuing its contractionary monetary policy as needed while also monitoring the broader economic landscape for the betterment of the citizenry. “Our goal is to ensure that inflation remains within manageable levels, fostering an environment conducive to economic growth and stability,” he assured.