Lower Exchange Rate: End The Cut In Spending And Don’t Take Cash Away From Commercial BanksOnce again, money exchangers are giving LD154 for the USD1, even though less than 60 days ago, they gave LD170 for USD1. Today, you get LD60 in change because the exchange rate for USD5 has dropped from LD850 to LD700. Now, let us reflect for a moment on how policymakers in a serious economy manage a policy instrument such as the exchange rate. Alternatively, the following can be done:Government can reduce the printing of new banknotes,Government can withhold some quantity of the Liberian dollars from the market, thereby reducing the Liberian dollars on the market. In short, add the Liberian dollar when a government is broke or when the local currency appreciates in value.

Source: Front Page Africa October 27, 2021 04:03 UTC