The Central Bank of Liberia (CBL) has entered a new era under the leadership of Executive Governor-Designate Henry F. Saamoi, following the controversial exit of his predecessor, J. Aloysius Tarlue. Tarlue’s suspension by President Boakai, prompted by an audit report revealing unauthorized financial transactions at the CBL, led to a legal battle for compensation for his unexpired term. Saamoi, during his senate confirmation hearing, confirmed that the government had settled with Tarlue, effectively closing the chapter on his tenure and paving the way for Saamoi’s official appointment. The exact amount of the settlement remains undisclosed, leaving the public in the dark about the cost of Tarlue’s departure. Saamoi expressed gratitude for the President’s confidence in his leadership and outlined his vision for the CBL, emphasizing price stability, financial sector stability, and support for the government’s economic growth agenda.
Saamoi acknowledged the challenges facing the CBL, including limited reserves, non-compliance with internal policies and procedures, corporate governance issues highlighted in the General Auditing Commission (GAC) report, technological vulnerabilities, and operational risks impacting price and financial stability. He outlined immediate steps taken to address these issues, including restructuring key committees such as the Monetary Policy, Compliance & Risk Management, Financial Stability, and Procurement Committees. Furthermore, Saamoi initiated efforts to address the recommendations of the GAC and other audit reports. A new strategic plan for 2025-2029, aligned with the government’s economic agenda, was developed to guide the CBL’s transformation into a model central bank in the sub-region. This plan prioritizes operational efficiency, macroeconomic stability, financial system digitalization, financial inclusion, and regional integration. A key objective is the transition to a cashless economy, while recognizing and mitigating the associated cybersecurity risks.
Saamoi highlighted progress made during his interim leadership, emphasizing maintaining single-digit inflation, increasing import cover and net international reserves, preserving the stability and soundness of the banking system, and strengthening collaboration with the Ministry of Finance and Development Planning. He underscored the significance of government repayments to commercial banks, totaling over US$4 million, as a crucial step in rebuilding confidence in the government’s financial commitments. This action is seen as vital for the development of debt and financial markets.
On the monetary policy front, a Monetary Policy Committee (MPC) was established to support the CBL’s decision-making process. In response to moderating inflation and to stimulate economic activity, the MPC adjusted the monetary policy rate (MPR) downwards, aiming to manage Liberian dollar liquidity effectively. Operational achievements include a successful reduction in the CBL’s wage bill through staff rationalization.
The CBL’s new strategic plan envisions a significant transformation within the institution, focusing on operational efficiency, macroeconomic stability, and modernization of the financial system. The pursuit of a cashless economy represents a bold ambition, requiring careful management of associated risks, particularly in the realm of cybersecurity. The CBL’s commitment to addressing past shortcomings, highlighted in audit reports, and its proactive approach to strengthening internal governance mechanisms are crucial for restoring public trust and ensuring the institution’s effectiveness in fulfilling its mandate.
The settlement with former Governor Tarlue, while bringing closure to a period of uncertainty, also raises questions about transparency and accountability. The undisclosed amount paid to Tarlue leaves room for speculation and underscores the need for greater transparency in such matters. As Saamoi embarks on his leadership journey, he faces the crucial task of balancing the CBL’s various objectives, navigating complex economic challenges, and implementing the ambitious strategic plan while simultaneously addressing legacy issues and fostering public confidence in the institution. The success of his tenure will depend on his ability to effectively manage these competing priorities and steer the CBL towards a more stable, efficient, and transparent future.
