The MPC noted favorable developments in the prices of palm oil, cocoa bean, rubber, and rice, as well as those of iron ore, crude oil, and precious minerals (excluding gold). The Liberian dollar, on the hand, appreciated to LD171.53/USD1.00 relative to LD 172.52/USD1.00 in quarter 4 of 2020. The banking sector, the MPC noted, remained compliant with the capital adequacy (CAR) and liquidity ratios (LR), at 29.3% and 47.6, respectively, well above their respective thresholds. Non-performing loans, however, remained above the regulatory tolerable level, worsening by a further 5.7 percentage points to reach 26.9% of total loans. Overall, the foregoing economic developments prompted the MPC to maintain the current Monetary Policy Rate at 25% and reserve requirements.

Source: Front Page Africa May 24, 2021 00:11 UTC