As the Central Bank of Liberia (CBL) introduces a new family banknotes and coins, some Liberians who spoke to the GNN say they are excited to see a new family of banknotes and the introduction of coins on the Liberian market, commending the the bank for what they described as a job well done.
Over the past months the Central Bank of Liberia (CBL) has been vegoriously creating awareness on the infusion of the new banknote currency into the local market, according to sources at the bank this reform is inconsistent with the May 6, 2021, Joint Resolution of the National Legislature authorizing the Central Bank of Liberia (CBL) to print and mint the new family of Liberian currency totaling L$48.734 billion.
CBL was also instructed to get rid of the L$10 and L$5 banknotes. The resolution states that these denominations are to be minted into coins.
“That the denomination of banknotes to be printed shall be L$20, L$50, L$100, L$500, and L$1,000, and the denominations to be minted in coins shall be L$5 and L$10,” the Joint Resolution stated.
The Legislature also gave the CBL the mandate to ensure that the printing of banknotes and minting of coins are undertaken during 2021, 2022, and 2024 to respond to future liquidity in 2024.
The Joint Resolution also mandated the CBL to put in place adequate logistics and governance arrangements, including appropriate procedures, internal controls, and compliance functions, to ensure the integrity and transparency of the currency reform process.
Additionally, the CBL’s Technical Committee for Currency Reform (TCCR) has been guided by technical advice from Kroll Associates Inc. (Kroll) (starting in March 2020) and the International Monetary Fund (IMF) earlier.
The technical support from the IMF is primarily focused on the macroeconomic implications of the currency program within the context of the Extended Credit Facility (ECF), while the technical support from Kroll is focused on assisting the TCCR to assess and manage risk associated with the reform process, including procurement, design work, security, and other operational issues.
Speaking at the official launch of the campaign, CBL Executive Governor J. Aloysius Tarlue lauded development partners for their contribution and support to the government through the bank.
He noted that the international partners’ support has helped the country to maintain macroeconomic stability over the years.
Tarlue said the support provided to Liberia by the development partners including the IMF, World Bank and others, over the years is hugely recognized, especially towards the country’s ongoing new currency reform process.
He said the awareness activities on the infusion of the new Liberian currency will run for seven months, beginning September 1, to the end of March 2023, with several town hall meetings planned by the bank.
Tarlue added the strategy is also intended to infuse the new currency into the market through the various commercial banks for accountability purposes.
“CBL is working with other financial institutions to ensure that the process is smooth and successful and wants to encourage the public to open accounts with various commercial banks in the country,” he said.
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