Rédaction Africa Links 24 with New Dawn
Published on 2024-04-01 04:50:00
A national program was initiated by the Central Bank of Liberia (CBL) before the recent legislative and presidential elections to retrieve legacy banknotes from the market. However, the exercise faced delays due to the elections and challenging road conditions in the country.
The CBL authorities are now seeking President Joseph Nyumah Boakai’s approval to extend the cash retrieval exercise nationwide. The campaign began on 22 October 2022 with the aim of replacing old banknotes and coins with a new family of currency. The authorities have decided to extend the deadline for the exchange exercise and the termination of the legal tender status of the legacy banknotes by 45 days, from 1 April 2024 to 15 May 2024.
The initiative was launched in accordance with the mandate of the 54th Legislature, to be carried out through commercial banks and other regulated financial institutions for the retrieval of old banknotes. The authorities had initially set 31 March 2024 as the deadline for the termination of the legal tender status of the old banknotes.
Various challenges, including poor road conditions and the recent presidential and legislative elections, have impacted the timeline for the cash retrieval nationwide. The presidential transition that followed the elections also contributed to delays in the exchange exercise.
Despite these challenges, the CBL has successfully retrieved a significant amount of the targeted old banknotes. They have replaced L$21.41 billion of the old banknotes, which accounts for 85% of the estimated L$25.258 billion worth of banknotes. However, there is still a substantial volume of old banknotes in circulation.
Concerns have been raised by members of the public who may not be able to meet the deadline due to being located in remote areas without access to commercial banks. The CBL has taken these concerns into consideration and is looking to extend the exercise with the approval of President Boakai.
To reach rural parts of the country, the CBL dispatched teams to ten out of Liberia’s 15 counties on 18 March 2024 to intensify the exchange exercise and meet the 31 March deadline. However, there are reports that the exercise is still ongoing even after the end of the month.
In 2021, the 54th Legislature authorized the CBL to print and mint a new family of currency worth LS48,734,000,000.00. This authorization was based on the Bank’s request to introduce a new set of banknotes and coins to replace the legacy currency.
Overall, despite the challenges faced during the cash retrieval exercise, the CBL is working to successfully complete the transition to the new family of banknotes and coins in Liberia.
Read the original article on The Newdawn Liberia
