US Rate Differs at Street Bureaus

first_img– L$118 – L$120 = US$1 The unprecedented rise in the buying rate of the United States dollar to the Liberian dollar varies between L$118 and L$120 to US$1 at street vendors and forex bureaus in central Monrovia and Paynesville.The Daily Observer has observed that up to yesterday in central Monrovia, the exchange rate of the US dollar to the Liberian dollar ranged from L$119 – L$120 per US$1, while in Paynesville, especially in the Red Light Market, the rate was L$118 – L$119 to US$1.The selling rate of the United States dollar to the Liberian dollar at stores ranged between L$125 to L$130.This contradicts the buying and selling rate of the Liberian dollar to the US dollar at the Central Bank of Liberia (CBL).Up to June 24, 2017, the CBL announced the buying rate as L$112.75 to US$1 and to be sold at L$113.46 to US$1.“These are indicative rates based on results of daily surveys of foreign exchange markets in Monrovia and selected cities,” the CBL explains in the daily exchange rate postings found on the front pages of a number of daily newspapers including the Daily Observer. “These rates are collected from the Central Bank, commercial banks, parallel markets and the licensed forex bureaus.” Tha CBL adds: “The rates are not set by the Central Bank of Liberia.”Financial experts say the Liberian dollar would likely keep dipping against the US dollar from L$135 to US$1 and the US may steadily rise up to the eve of the October elections.The hike of the US dollar to the Liberian dollar is obviously causing hardship for marketers and consumers because of the arbitrary increase in goods and services as well as high punishing interest repayments to commercial banks.Expert OpinionsTwo experts from the Ministry of Finance and Development Planning and the Central Bank of Liberia confided in the Daily Observer that the exchange rate is one of the most important determinants of a country’s relative level of economic health, and it plays a vital role in a country’s level of trade.The experts said there are numerous factors which determine the hike in the exchange rate, and most especially when a country is perceived to have more political and economic risks. The pending elections amid threats from political parties, is causing a loss of confidence in the currency and the movement of capital.They also said the hike is also an engagement in large-scale deficit financing by the Liberian government to pay public sector projects that are funded by the government.“A large debt encourages inflation, and if inflation is high, the debt will be serviced and ultimately paid off with cheaper dollars in the future,” they said.They also pinned the hike to the decline in the prices of the country’s major commodity exports, rising import demands and deteriorating terms of trade, the departure of concession companies and widespread capital flights, citing them as contributing factors to the increase in the depreciation of the Liberian dollar.They also said a country with a consistently lower inflation rate exhibits a rising currency value, as its purchasing power increases relative to other currencies, and indicated that interest rates, inflation and exchange rates are all correlated and cause the exchange rate to rise.“By manipulating interest rates, central and commercial banks exert influence over both inflation and exchange rates, and changing interest rates impact inflation and currency values. Higher interest rates offer lenders in an economy a higher return relative to other countries. Therefore, higher interest rates attract foreign capital and cause the exchange rate to rise,” they said.They added: “The impact of higher interest rates is mitigated, however, if inflation in the country is much higher than others, or if additional factors serve to drive the currency down. The opposite exists for decreasing interest rates – that is, lower interest rates tend to decrease exchange rates.”The experts further argued that the exchange rate can hike if the country is spending more on foreign trade than it is earning, and if it is borrowing capital from foreign sources to make up the deficit. In other words, the country requires more foreign currency than it receives through sales of exports, and it supplies more of its own currency than foreign states demand for their products. The excess demand for foreign currency lowers the country’s exchange rate until domestic goods and services are cheap enough for foreign states to buy, and foreign assets are too expensive to generate sales for domestic interests.The opinions of the President and CBLIt may be recalled that the CBL has blamed the depreciation of the Liberian dollar to 7.1 percent against the US dollar mainly on account of declines in the prices of the country’s major commodity exports, rising import demand and deteriorating terms of trade.But President Ellen Johnson Sirleaf said in addition to the reasons provided by the CBL, the departure of concession companies and widespread capital flights are contributing factors to the increase in the depreciation of the Liberian dollar.“We have a problem with foreign exchange because many of our iron ore companies closed down due to the drop in the price of global commodity. So, the US dollar is not plenty like it used to be. Once you have small US dollars with plenty people chasing it, it puts strain on the Liberian dollar. Many people are transporting money through wires like Western Union and Money Gram to support their families abroad. Betting companies are also wiring the US dollar,” President Sirleaf said during her recent regular Simple Liberian English Chat with Torwon Sulonteh Brown of UNMIL Radio.She indicated that the government’s economic management team is working to improve the situation in the shortest possible time and added that due to the lack of enough US dollars in the country, the government has employed a new measure of paying some public servants’ salaries in Liberian dollars.As a consequence of the high exchange rate, Liberians who used to buy a 25kg bag of rice for L$1,600 at the rate of US$20 are now buying the same bag of rice for L$1,880 or US$20.Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)last_img read more

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YOUNG DONEGAL MAPPERS SCOOP TOP GEOGRAPHIC INFORMATION PRIZE

first_imgMs Hennigan’s geography class giving a thumbs up for World GIS DayA group of young mappers from Loreto Convent in Letterkenny have scooped the Association of Geographic Information Prize.Last November a ‘Missing Maps Mapathon’ took place in the Loreto Convent, Letterkenny which saw 25 third year students map vulnerable parts of the world to help international agencies, like the Red Cross, to better respond to humanitarian crisis and to reach vulnerable people quicker.This event was held to mark World GIS Day and the Loreto Convent were the only secondary school in Ireland to hold an event of its kind. The students were rewarded for their efforts by securing first prize in a competition held by the Association of Geographic Information Northern Ireland (AGI NI), winning an iPad mini for their school.This event was run by the Research & Policy Unit of Donegal County Council in conjunction with the Councils Social Inclusion Unit.Twenty five 3rd year students from Ms Hennigan’s Geography class participated in the event and they were greatly assisted by Síofra Ní Fhearraigh, a transition year student who spent her work experience in the Councils Social Inclusion Unit.Ms Hennigan’s class being presented with the winning prize from the Association of Geographic Information along with staff members from Donegal County Council.The ‘young mappers of the future’ digitally mapped urban areas in the Congo Region of Africa to help international agencies like the Red Cross and Medecines Sans Frontieres to respond better to humanitarian crises and to reach vulnerable people there quicker. Ms Hennigan stated that “the Mapathon allowed me to see first hand how my students were learning about vulnerable parts of the world and through their work in making a difference there while also developing their own mapping skills. We look forward to hosting a Mapathon in Loreto Convent on an annual basis”.Ms Hennigan’s class featured on the global map of all events taking place on World GIS day and were further rewarded for their efforts by securing first prize in a competition held by the Association of Geographic Information Northern Ireland (AGI NI), winning an iPad mini for their school, kindly sponsored by Irish Mapping & GIS Solutions (www.imgs.ie).Donegal County Council’s representative on the AGI, Rosita Mahony explained that “the Association of Geographic Information (AGI) is a voluntary organisation which aims to raise awareness of Geographical Information Systems (GIS) in order to make better decisions”. She congratulated Loreto Convent Letterkenny for their wonderful participation and application to the ‘Missing Maps Mapathon’ and thanked Irish Mapping and GIS Solutions for their prize sponsorship.Simon Wheeler, Chair of AGINI said “The Missing Maps project is a fantastic project allowing everyone of all ages to make an active contribution to humanitarian relief. Without maps, the aid agencies cannot deliver help as effectively. It is also a great way for students to take an active interest in mapping and location data which can be an invaluable skill throughout their lives and we were delighted to be involved”.As part of Geography Awareness Week which is celebrated globally from the 15th to the 21st of November, World GIS Day is a key event on the geographer’s calendar. World GIS Day first took place in 1999 as an international day for geographers to demonstrate real world applications that are making a difference and to educate young users of the benefits in using digital maps to make better decisions. ENDPhoto 1 – Ms Hennigan’s geography class giving a thumbs up for World GIS DayPhoto 2 – Ms Hennigan class being presented with the winning prize from the Association of Geographic Information along with staff members from Donegal County Council.YOUNG DONEGAL MAPPERS SCOOP TOP GEOGRAPHIC INFORMATION PRIZE was last modified: April 25th, 2016 by StephenShare this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Reddit (Opens in new window)Click to share on Pocket (Opens in new window)Click to share on Telegram (Opens in new window)Click to share on WhatsApp (Opens in new window)Click to share on Skype (Opens in new window)Click to print (Opens in new window)Tags:donegalletterkennyLORETO CONVENTmapperslast_img read more

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