[ad_1]
The new Liberian president announces a series of measures to curb inflation. Monetary and economic reforms are on the agenda of the government which after a float of beginning of mandate, wishes to tackle structural reforms.
Georges Weah announces to begin a series of short-term measures that foreshadow the establishment of a structural overhaul of the Liberian economy. A series of reforms will soon come to revive the country's economy. On July 16 Georges Weah spoke to the country to explain the implementation of a series of fiscal and monetary measures aimed at mitigating the fall of the Liberian dollar against the US dollar. The priority is to curb galloping inflation that affects people's purchasing power.
"I am fully aware of the negative impact of the fall in the exchange rate on the economic situation of the Liberian people, and the serious difficulties that start to engender. We believe that a more vigorous application of monetary policy should solve the problem, "said President Weah.
The first step is an immediate injection into the economy of $ 25 million by the Central Bank in order to make up for the excess of Liberian dollars. For the sake of understanding, as of July 16, it took about 160 Liberian dollars to get a US dollar, compared with only 100 in June 2017. According to President Weah, 90% of the local currency circulates in informal circuits while the fall of Liberian dollar has led to higher prices, including basic necessities. Inflation has risen from 17% in February to 21% in July
In the short term, greater powers will be given to the central bank to strengthen its supervision of the monetary system. George Weah elected in January 2018 is eagerly awaited on the reform of the economy, even though his campaign was focused on the construction site of the revival. The context of the time was complex and gloomy as the country and the Liberian economy had not yet recovered from the 2014 Ebola outbreak and the decline in commodity prices; especially iron or rubber, had a negative impact on the figures of the economy. The consequences of the years of civil war between 1989 and 2003, which have seriously affected the country, can undoubtedly also be mentioned.
The challenge is immense as the new president is criticized by the people who are waiting with impatience with the changes promised during the election period. First Steps to Abolish Import Taxes on Certain Commodities Must Have Social Impact in Short Times
President Weah spoke out, aware of the expectations and needs of Liberians. He announced that a new speech should soon reveal the strategy of economic recovery and fight against poverty. He accompanied his message with one caveat, calling for the patience of the people, recognizing that "finding lasting solutions to macroeconomic challenges will take time."
Source: The Africa Tribune
Source link
