By Grace Q. Bryant
The Minister of Information, Cultural Affairs, and Tourism (MICAT), Jerolinmek M. Piah, has disclosed the Liberian government’s efforts to stabilize the exchange rate and mitigate the effects of price fluctuations on citizens and businesses.
He acknowledged that while the exchange rate stability is a significant step forward, it must be accompanied by corresponding reductions in prices for essential goods and services noting, “We are focused on stabilizing the economy and making sure that the benefits are felt across the board. Our goal is to achieve price reductions in a way that is fair and sustainable for everyone.”
Speaking on ELBC’s Super Morning Show on Monday, November 25, Piah shared insights from a discussion with Finance Minister Augustine Ngafuan, acknowledging progress made while addressing the challenges facing Liberia’s economy.
Piah highlighted the seasonal increase in remittances from Liberians abroad during the holiday season, noting its positive effects on the local currency.
“Remittances typically increase at this time of year as people abroad send money to their families. This surge positively impacts the exchange rate, stabilizing the Liberian dollar,” he explained.
He also praised the government’s decision to allow taxes to be paid in either Liberian or U.S. dollars; a policy that enhances the usage of the Liberian dollar while reducing pressure on foreign exchange reserves.
“This policy strengthens the Liberian dollar by encouraging its circulation. Such measures reflect our commitment to building a stable economy,” Piah added.
Minister Piah acknowledged that despite the improvements in the exchange rate, commodity prices have been slow to adjust attributing this to business owners’ caution about potential losses should the exchange rate increase again.
“Business people are careful. They’ve purchased goods at higher exchange rates, and sudden price drops could lead to losses if the rates rise again. We understand their concerns, but we are monitoring the situation,” he said.
He assured the public that the Ministries of Commerce and Transport are working to stabilize prices and ensure that the benefits of exchange rate improvements reach ordinary Liberians.
Piah stressed the importance of educating the public, business owners, and financial stakeholders on the dynamics of currency fluctuations and pricing, noting that it is critical to building trust and ensuring stability.
“It’s essential that no one feels disadvantaged in this process. We need to balance the interests of consumers, business people, and the financial sector. Education on these issues will help everyone make informed decisions,” he emphasized.
He also lauded the Central Bank of Liberia for its efforts in maintaining monetary stability, describing its interventions as crucial to economic progress.
“The Central Bank is doing well in ensuring stability. Sustaining these efforts will help us maintain a predictable and balanced economy,” Piah noted.
Piah expressed optimism about the country’s economic prospects, referencing assurances from the finance minister regarding long-term exchange rate stabilization.
“The Finance Minister believes we are moving toward a period of sustained stability, where fluctuations are minimized, and the Liberian dollar holds firm. This is encouraging news for all of us,” he said.
Addressing concerns about transportation and commodity costs, Piah reiterated the government’s commitment to ensuring affordability for Liberians.
