Mika Saito of the International Monetary Fund (IMF) African Department has highlighted four things to know how Liberia is reforming its economy amid the COVID-19 crisis. In an article, she said the COVID-19 pandemic hit Liberia at a time of pre-existing fragility.
"The country held elections in 2017, leading to the first democratic transition of power between different political parties since 1944. Following the inauguration of the new administration in 2018, the United Nations Mission in Liberia, which had been in the country since the peace agreement of 2003, handed over its security responsibilities to the national police and military. These transitions coincided with the winding down of increased foreign aid after the 2014-16 Ebola outbreak. These events caused a sharp decline in net foreign exchange inflows to the country. This in turn heightened pressure on the Liberian dollar exchange rate and on inflation. To stabilize the economy, the authorities had to make difficult adjustments to an economy with less foreign exchange inflows, which created significant hardship for the Liberian people. The COVID-19 pandemic hit Liberia during this difficult adjustment phase," she stated.
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