By Alex Yomah
It appears that there would be contradiction in the timeframe to replace all of the old banknotes in circulation if the Liberian Senate concurs with its joint committee’s report tomorrow.
In a resolution passed by the House of Representatives and transmitted to the Liberian Senate for passage, the resolution recommended the CBL to replace the entire old banknotes in three years (2021 to 2023) while the Senate’s joint Committee is recommending two years (2021-2022) following financial experts’ inputs.
According to the joint legislative Resolution, the CBL is supposed to notify the National Legislature of the actual volume and value of currencies printed and imported into the country at every interval from 2021 to 2023.
The Legislature approved the Central Bank of Liberia (CBL) request to print a new family of banknotes in the tune of LD 48,734 billion through a joint resolution aimed at replacing all of the old banknotes in circulation on the Liberian market.
But if all goes well, the Liberian Senate is expected to approve or disapprove the House of Representatives Resolution on the printing of new family banknote today following the submission of its joint committee’s thoroughly scrutinized report from the expert’s viewpoint.
Yesterday, the Senate Joint Committee comprising of its committees on Banking and Currency; Ways, Means, Finance and Budget; Judiciary Human Rights, Claims and petitions; Public Accounts and Audits recommended that Senate approves with the House of Representatives to approve the Central Bank of Liberia’s (CBL) request to print the new banknotes intended to entirely replace the old ones.
The joint committee reported that it conducted series of hearings with financial experts on financial internal control; consulted with officials from the Ministry of Finance, CBL, Liberia Bank for Development and Investment (LBDI) and others as part of its due diligence.
Accordingly, the report which is expected to be placing that august body in an informed position recommended that the Senate agrees with the House of Representatives to grant the CBL the right to print new banknotes amounting to L$ 48.733 billion.
The Central of Liberia submitted its request to print the new family banknotes dubbed currency reform to the Liberian Senate since February 2, 2021 through a resolution adopted by its Board of Governors.
The Legislature’s authorization is aimed at replacing all the old family banknotes in circulation on the Liberian market.
The House of Representatives unanimously voted to grant the CBL the permission to print the new money during its 19th day sitting following a resolution by majority members of that body.
“The CBL shall arrange with the printer an appropriate payment plan considering the budget of the bank and that plan shall be with the Legislature responsible committees accordingly and the Legislature in collaboration with the Ministry of Finance and Development Planning (MFDP) shall make available the additional funding in the amount required for the full replacement through budgetary appropriation,” the House’s resolution contained.
“The CBL shall ensure that there is adequate legal terms put in place to manage the currency reform process. The CBL shall also develop a currency management strategy with a reform and strong internal control system,” the lawmakers’ Resolution emphasized.
The CBL is intended to ensure an internal financial and system audit as well as risk mitigating measure to safeguard the reform process and that the replacement shall only be done through the CBL, the commercial banks and designated financial institutions regulated and supervised by the CBL with straight supervision and monitoring by the CBL.