By Alex Yomah
Serious concern is said to be looming over the shortage of Liberian banknotes in Liberia with Liberians who go for money at the various banking institutions complaining seriously that there is ‘no money’.Recently, some members of the Press Union of Liberia (PUL) who had gathered in Bomi County in celebrations of their 30th anniversary celebrations complained when trying to get Liberian dollars from their personal accounts due to the same shortage of banknotes in that part of the country.
Prior to its adjournment, the Legislature wrote series of communications inviting members of the Central Bank of Liberia to explain reasons leading to the shortage of the Liberian banknotes and it was reported that the Executive Governor along with his team even met with members of the House of Representatives last month.
The governor and his team were invited by the House of Representatives to explain why the recently printed L$ 500 banknotes are not visible in the economy as well as the continuous supply of mutilated banknotes by commercial banks to customers despite the printing of the L$ 4 billion.
Some aggrieved customers who spoke to this paper expressed frustration and are bent on seeking answers concerning the whereabouts of the Liberian dollars knowing that some L$ 4 billion was printed by the CBL just recently.
But what is disturbing, according to some customers, since the arrival of the L$ 4 billion banknotes, shortage of banknotes still exists.
Meanwhile, the Senate Pro-temp Albert Chie clarified that the Central Bank of Liberia has written the Legislature to print additional L$35 Billon to ease the liquidity situation currently facing the country.
Senator Chie confirmed reports that the Central Bank of Liberia made a request which he said was read in open plenary session that there is a pressing need to print L$35 billion dollars to replace all of the mutilated banknotes on the Liberian market.
According to the Pro-temp, CBL authority had requested the Legislature a year ago to print additional L$35 billion dollars to replace all of the old banknotes in circulation which amounts to L$25 billion dollars but their concern is with the cost of printing the additional banknotes.
Senator Chie also clarified that contrary to speculations, the L$4 billion dollars printed and brought in the country is not intended to replace mutilated banknotes rather, aimed at augmenting the money that was already in circulation.
The senator narrated that during the close of last year’s session approaching December 2019, there was a complete shortage of the Liberian dollars in commercial banks which prompted the government to think that some citizens were withholding the money.
“There is a need to replace all of the currency on the market; it has been accessed that we need approximately 30 billion dollars plus but then, the cost of printing is expensive so we are still looking at where we can get money from to print the 30 billion dollars and get rid of all of the mutilated money. So the cost to print the money is the issue. The CBL has communicated to the Legislature to print said amount,” Albert Chie noted.
Three weeks ago, the CBL’s Executive Governor, J. Aloysius Tarlue, said that unless additional Liberian dollar banknotes are printed, the country will continue to experience a rapid increase in the mutilation of existing banknotes.
The CBL governor further disclosed that the L$ 4 billion banknotes recently secured by the CBL in July was only intended to ease the liquidity pressure for the Independence Day festive season; therefore it is inadequate to address future liquidity needs of the country.
But the Executive Governor said the lifespan for the enhanced and legacy banknotes is three years therefore there is a need to print additional banknotes because about 37 percent of the amount printed recently has been infused into the economy through the commercial banks with value amounting to L$ 1.5 billion dollars.
Though Governor Tarlue did not disclose the outcome of the meeting, he explained that the CBL met with commercial banks to inquire about complaints about why customers are not being served the L$500 denomination even though the CBL had made available the banknotes and assured that the cost for printing the L$ 500 notes is lower than printing of smaller denominations.