By Nasratu Kargbo
Members of Parliament from both sides of the aisle have asked the proposed Governor of the Central Bank Dr. Ibrahim Stevens to help stabilize the country’s economy.
Whilst addressing the nominee during the debate on presidential nominees on the 16th November 2023, the Deputy Leader 2 of the Opposition, Aaron A. Koroma said the country’s currency is depreciating and made reference to their salary in 2018 that used to be slightly above one thousand five hundred dollars, but stated that currently their salary is less than one thousand dollars. He added it shows that what one’s salary used to do years ago, cannot be done now.
“The exchange rate is killing, please work on that,” he said.
The MP said that the new Governor had given time for the discontinued use of the old Leone on the 31st of December this year, but cautioned that during festive seasons there is a usual shortage of cash in the banks. He stressed that if a whole batch of cash is withdrawn from the economy that could lead to economic chaos.
He urged the finance committee in parliament to summon the governor in order for him to explain his plans on how he intends to deal with the currency situation.
Koroma also expressed concerns regarding the cost of borrowing, saying that there is no total control over interest rate as it varies per bank with Microfinance institutions charging not below 30%.
He emphasized that if a businessman pays such interest, hardly anything will be saved as profit, and accused the banks of not bettering the lives of the masses. Koroma noted that the business sector is key to strengthening the country’s economy, “If you can strengthen the business sector it can go a long way to stabilize the microeconomic issues of the nation. And how will that be? It depends on how you make the cost of financing accessible, affordable, and reasonable to our people”, the MP stated
He also expressed displeasure at the exorbitant fees by mobile telecom operators for their services and what he said is a drastic reduction in the nation’s reserves.
Representing Bo District Amie Moriba said: “My concern is the dollar rate. I want to wake up one morning and see Sierra Leoneans refusing to accept dollars”. She said that in other countries such as China and South Africa, they refuse foreign currencies.
She stated that in Freetown, some house owners charge in dollars for rent, with no regard for the quantum of the Leone equivalent involved.
Moriba added that monies should not be tagged in dollars, citing that their allowances are paid in Leones.
Explaining his recent experience in Rwanda, the Speaker of Parliament Dr. Chernor Abass Bundu said “You cannot go to any shop in Rwanda with dollars and expect to be received with your dollars, they will show you the road to the nearest bank to go and convert your dollars into their local currency”.
He said shops, hostels, and other service providers do not accept foreign currencies, except theirs.
Dr. Bundu said that Steven has given a time limit for the usage of the old Leone, which he believes is okay. He however cautioned that after the date all old Leone currencies be taken to the Bank of Sierra Leone only and not to Commercial Banks.
All other MPs who contributed made similar requests that the economy be stabilized.
Yesterday, Parliament approved six nominees which included Dr. Ibrahim Stevens as the Country’s Bank Governor, Alfred J. Momodu as Director General of the Sierra Leone Roads Authority (SLRA), and Alhaji Mustapha Turay as Chairman Board of Directors at the National Mineral Agency amongst others.
Copyright © 2023 Politico (17/11/23)
