The Central Bank of Liberia (CBL) has introduced plans to formally roll out the brand new printed forex for trade within the Liberian economic system by varied commercials banks throughout Liberia.
CBL Governor, Alousius Tarlue informed the media Wednesday, October 5, 2022, the execise will start Thrusday, October 6, 2022 with the L$20 and L$50 denomination and can gravitate to the opposite denominations together with the cash within the coming months.
He stated the CBL has acquired a complete of L$1.9935 billion of the L$50 and L$20 denominations and that this batch arrived in nation between September 4 and September 19, 2022 respectively, nolting that the Bank has additionally accomplished the standard management of those Banknotes in keeping with CBL’s specs.
“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 deadlines at this time, to avoid the unnecessary rush and unintended consequences that could undermine the exchange process,” Governor Tarlue assured.
He defined, “As such, 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.”
According to him, the CBL, contemplating the challenges confronted by the industrial banks and restricted department community throughout the nation, is engaged on a method to decentralize the trade train by its money hub in Gbarnga, Bong County, and different authorised amenities beneath the direct management and supervision of the Bank.
Governor Tarlue additional indicated that along with making certain the well timed supply of the brand new forex within the nation, the financial institution has additionally been working to place in place the required logistical and operational capacities, to make sure the sleek implementation of the trade train.
He added, “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 maintained, “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.”
Meanwhile the CBL boss on the similar time additional disclosed, “We expect to receive a total of L$34,533,500,000.00, including the initial L$8,000,000,000.00 of the new banknotes that were brought in between November 2021 and February 2022 and a total of L$462,900,000.00 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 emphasised.
It might be recalled that in May of 2021, the CBL was licensed by the 54th Legislature to print new household banknotes. The Legislature authorised the printing and minting of cash in three phases, particularly 2021, 2022, and 2024.
However, the CBL in December 2021 launched the brand new Liberian greenback forex, beginning with the L$100 banknote to the tune of 4 billion Liberian {dollars}. The quantity, the CBL says, was supposed to extend Liberian greenback liquidity within the economic system.
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