The Central Bank of Liberia (CBL) has announced March 31, 2024 as the date to begin the decommissioning of old Liberia dollar banknotes series as legal tender.
According to a release from the CBL, by April 1, 2024, the old family of banknotes will be taken from the market and destroyed; that is, LS1 and LS2 will not be in use, ensuring that only the new family of banknotes will be in circulation.
The Central Bank of Liberia has set a procedure for the change of old banknotes to the new money, and is encouraging all to visit any commercial bank to begin transaction.
“This means that anyone in possession of the banknotes will not use them to buy or pay for any goods and services in Liberia. The public is therefore advised to have its old Liberian dollar banknotes exchanged at any commercial bank or regulated financial institution for newly printed banknotes and the newly minted coins,” a statement from the CBL read.
It may be recalled, the CBL, in October 2022, began the process of replacing the old denominations of the country’s banknotes with updated versions, releasing a total of L$1.9935 billion of the notes.
The Bank’s decision affected the LRD$20 and LRD$50 notes, which were replaced with new ones that came with more enhanced security measures; however, the old notes of the two denominations were scheduled to remain legal tender until phased out of the market.
The CBL received a total of L$1.9935 billion in values of L$50 and L$20, and per the 54th Legislature’s mandate, the exchange exercise was done entirely through commercial banks and other regulated financial institutions, the CBL statement read.
CBL Executive Governor, J. Aloysious Tarlue, said, “There is no need to rush. All existing banknotes in circulation will be exchanged at their full value without any discount in value as the Bank is mindful about giving specific deadlines so as to avoid the unnecessary rush and unintended consequences that could undermine the exchange process.
He emphasized that the Bank will decide on the duration of the exchange exercise as the exercise progresses, as they already have a better appreciation of the operational challenges, noting, “We expect to receive a total of L$34,533,500,000, including the initial L$8,000,000,000 of the new banknotes that were brought in between November 2021 and February 2022 and a total of L$462,900,000 coins by the end of 2022. This will comprise all the existing denominations, including the L$1,000 denomination, which is being introduced for the first time. The remaining amount will be brought into the country in 2024. For clarity, no banknotes or coins will be brought into the country in 2023.
However, the exchange exercise will continue with the banknotes and coins that will be in the country,” he explained.
Tarlue noted that with the challenges faced by the commercial banks and limited branch network across the country, the CBL is working on a strategy to decentralize the exchange exercise through its cash hub in Gbarnga, Bong County, and other approved facilities under the direct control and supervision of the Bank.
The CBL boss added that in addition to ensuring the timely delivery of the new currency in the country, the bank has also been working to put in place the necessary logistical and operational capacities, to ensure the smooth implementation of the exchange exercise.
“As we commence this exercise, we urge the public, the commercial banks, the business community, and all key stakeholders, to work with the Bank to ensure a smooth and successful exercise. The CBL alone cannot do it; we need the support of everyone,” Tarlue said. “This is the first time that the country is undertaking such a huge national initiative. Therefore, it is important that we take due care to protect the integrity of the process.”
In May 2021, the CBL was authorized by the 54th Legislature to print a new family of banknotes. The Legislature approved the printing and minting of money in three phases, specifically 2021, 2022, and 2024.
CBL introduced the new Liberian dollar currency, starting with the 100 Liberian dollar banknote to the tune of four billion Liberian dollars. The amount, the CBL says, was intended to increase Liberian dollar liquidity in the economy in December 2021.
