The public can now rest assure that the Central Bank of Liberia’s (CBL) promise made regarding the banknotes is substantive as the bank officially rolls out the new currency for exchange in the Liberian economy today.
Speaking at a press conference yesterday, the CBL Governor, Aloysius Tarlue told the media that the exercise kicks off today with the L$20 and L$50 denomination and will gravitate to the other denominations including the coins in the coming months.
He announced that the bank has received a total of L$1.9935 billion of the L$50 and L$20 denominations and that this batch arrived in country between September 4 and September 19, 2022 respectively.
Governor Tarlue added that bank has completed the quality control of these banknotes in line with CBL’s specifications and that the coins are expected in the country before the end of October 2022.
“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 was brought in between November 2021 and February 2022 and a total of L$462,900,000 coins by the end of 2022.
He stated further that this will comprise all the existing denominations, including the L$1,000 denomination, which is being introduced for the first time with assurance that the remaining amount will be brought into the country in 2024, after the general and Presidential elections.
Governor Tarlue indicated that for purpose of 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.
“As we have repeatedly said, there is no need to rush. All existing banknotes in circulation will be exchanged at their full value without any discount in value. The Bank is mindful about giving specific deadline at this time, to avoid unnecessary rush and unintended consequences that could undermine the exchange process,” he clarified.
“The Bank will decide on the duration of the exchange exercise as the exercise progresses and we have a better appreciation of the operational challenges. We want to avoid the mistakes of the other countries in rushing the exercise,” he explained.
He stressed that In keeping with the mandate of the Legislature, the exchange exercise will be solely conducted through the commercial banks and other regulated financial institutions, in collaboration with the commercial banks.
“As agreed in the Memorandum of Understanding (MoU) we signed in February, we expect the commercial banks to adhere to their obligations under the MoU, including catering to non-account holders, which comprise mainly ordinary Liberians through special windows,” CBL Governor mentioned.
He explained that considering 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, to ensure that all parts of the country are covered.
Meanwhile, in addition to ensuring the timely delivery of the new currency in the country, the CBL 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, he pleaded.
He noted that the CBL alone cannot do it; and that they need the support of everyone stressing, ‘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.”
He thanked external partners, notably the International Monetary Fund (IMF), the United States Agency for International Development (USAID), and the US Embassy with support from the Government of Liberia for the financial, technical, and moral support towards this process.
“We are particularly grateful to Kroll & Associates from the UK, who worked with the Bank throughout this process, providing technical assistance to the Bank, with funding from USAID,” he recognized.
In conclusion, he thanked Liberian people for their patience and cooperation with the Bank, especially with the constraints imposed by the scarcity of change in the economy.
