MONROVIA: The Vice President of Liberia, Jeremiah Kpan Koung, has disclosed that currently, the Central Bank of Liberia (CBL), is working on a Monetary Framework to meet the Requirements for the West Africa Monetary Zone.
“It is expected that Liberia, Ghana, Gambia, Guinea, Sierra Leone and Nigeria will work towards the implementation of a single currency to achieve economic integration,” the Liberian Vice President told the 17th Annual Banking & Finance Conference held in Abuja, Nigeria, on September 10, 2024.
According to Vice President Koung, this policy framework will lay the foundation for the realization of a common currency for ECOWAS member states.
“However,” he told the conference, “We have a collective responsibility to make sound economic decisions to reduce our debts and stabilize our exchange rates.”
According to VP Koung, as the global economy continues to expand, African leaders have emphasized the need for regional economic integration, trade, and commerce.
“With the signing of African Continental Free Trade Area, we have an opportunity to harmonize our fiscal and monetary policies and encourage intra-Africa trade through our banking institutions,” he stressed.
VP Koung: “While Liberia is currently experiencing a gradual expansion of commercial banks within our economy, I strongly believe that call for more investment and development banks is necessary for rapid economic growth and development.”
He averred that these investment banks are more flexible for long-term loans and relative offer low interest rates.
“For our economy to accelerate quickly, it will require the provision of capital for investment in the energy, agriculture, infrastructure, trade and exploration,” he added.
The Vice President pointed out that “the Liberia Bank for Development and Investment (LBDI), is the only investment and development bank we have. Although it also performs investment and commercial functions, the LBDI lacks the capital required to contribute to Liberia’s ambitious economic transformation plan.”
“Considering the absence of other investment and development banks within our economy, we have relied heavily on multi-lateral development institutions like the African Development Bank, the World Bank, and others to finance our development projects”, he further indicated.
He then calls for a new strategy for banking and investment, especially in the struggling economies, stressing that “economic empowerment of individuals and small businesses is critical for savings and investments.”
“We should never forget about the opportunities that comes with investment in our local economies. As leaders, we have an essential role in working with our national institutions to create a safe environment where trade and investment can succeed,” Koung further told the gathering.
He indicated that Liberia government’s ARREST AGENDA offers opportunities to encourage potential investments in the areas of agriculture, roads, rule of law, education, sanitation and tourism.
“To strengthen our banking sector, we must continue to work on policy reforms to reduce the rate of default payment on loans. In Liberia, the Central Bank is working very hard to support banks with high default rates to improve the country’s foreign exchange reserves,” he emphasized.
