Projected Loss of Seigniorage in Liberia 1/
(In millions of US dollar 2/)
|Stock of Liberian dollar base money||34||39||45||50||54||59|
|(In percent of nominal GDP)||7.0||7.3||7.9||8.1||8.4||8.7|
|(In percent of total fiscal revenues)||49.5||41.4||40.1||40.0||37.2||35.1|
|Creation of Liberian dollar base money||6||5||5||5||5||5|
|(In percent of nominal GDP)||1.2||1.0||0.9||0.8||0.7||0.7|
|(In percent of total fiscal revenues)||8.4||5.4||4.7||4.0||3.3||2.7|
Projected base money and underlying assumptions for nominal GDP and fiscal revenues are based on the medium-term projections in the IMF staff report on Liberia’s 2005 Article IV consultation. Annual real GDP would grow by about 4 percent, insufficient to create significant new employment opportunities and raise living standards. The Report noted that this scenario would likely materialize if the current uneven pace of reforms persists.
Liberian dollar base money are converted into US dollar, using the exchange rate as of end-2004.