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As Commercial Banks Run Out Of Liberian Dollars: CBL Broke? “We saw this problem far ahead that we would not buy in US because it is nowhere to be found, neither would we buy in Liberian dollars because the rate is too high and so we are just turning around here and there.”

Commercial banks in Liberia are reportedly running out of Liberian dollars as  customers are  being  turned away  whenever they  go to withdraw from the banks.

The news of scarcity of Liberian dollars   at commercial banks has surfaced in the midst of two containers of unspecified amount of bank notes being shaped into the country reportedly   by the Central Bank of Liberia for reasons yet to be known.

At the moment, Liberia is experiencing heightened inflation following the printing  of new banknotes by the CBL in  2016 which sound economists  suspected would create  inflation  and undermine the nation’s economy.

Economists are also tying the situation to bad economic policy put in place by the Ellen Johnson Sirleaf-led government wherein the economy  is  predominantly  controlled by foreign investors and entrepreneurs.

It is also alleged that capital flight is at an all time high due to foreign business people and senior government officials shaping millions of dollars out of the country and at the same time changing the Liberian note at the highest rate.

While this deteriorating economic situation is currently unfolding in Liberia, the CBL is reportedly facing a capacity bottleneck due to its inability to maintain allof its staff in employment at this time.

“ We experienced this level of inflation in the past when the interim government headed by Dr. Amos C. Sawyer printed new Liberian banknotes during the civil war but did not have the kind of value they thought the money would have on the market,”  one economist told the In Profile Daily in Monrovia on Thursday, November 23, 2017.

At the same time, Liberian traders and business people continue to complain since the printing of the new banknotes that the rate has been climbing rather than coming down.  “We saw this problem far ahead that we would not buy in US because it is nowhere to be found, neither would we buy in Liberian dollars because the rate is too high and so we are just turning around here and there,”  a frustrated  trader noted.

 

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