Liberian government to print LRD$27.5billion new banknotes

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Central bank of Liberia head office in Monrovia[photo: Smart News]

The Executive Governor of the Central Bank of Liberia (CBL), has requested the country’s legislature for the printing of new L$27.5 billion banknotes, the third time since 2016.

 Aloysius Tarlue says to address the shortage of Liberian banknotes on the market, the CBL needs the authorization to print to infuse in the economy over the period of three years.

Liberia is currently engulfed with cash shortages at various commercial banks.

In 2019, the government of Liberia printed additional LRD$4 billion banknotes to remedy the situation to no avail.

According to report the printing of the new banknotes will cost the Weah led government at least US$27.5 million if it is authorized by the legislature to go ahead.

Governor Tarlue, made the pronouncement when he appeared before the Plenary of the House of Representatives, along with other top officials of the bank.

Liberia Public Radio national correspondent at the legislature said several lawmakers attempted cross-examination of the  CBL Governor to give detail information on his proposed request, but were told to reserve their questions for a closed-door session which members of the House of Representatives opted for.

Governor Tarlue told members of the House that  several reasons behind the money shortage which he said was worsened by COVID-19 pandemic  the high demand of money during the festive seasons (July 26 and December 25).

 “The banks are in the business to make money. So, if you don’t pay your loans, then the banks don’t have money,” he said.

Following approval of the Board of Governors, he revealed that the CBL has written President George Weah to seek approval from the Legislature as per law to print.  However, he did not specify whether the CBL will be requesting for the complete replacement of both the legacy and the enhanced banknotes that he previously said have outlived their lifespans.

 LRD$16billion missing

In 2016, the government of Liberia printed LRD$16 billion new banknotes after members of the legislature approved a request from the central bank noting that all the Liberian legacy notes were mutilated and needed replacement.

However, the amount printed went missing from the vaults of central bank although latter investigation conducted Kroll Associates indicated that no money went missing.

Kroll however, pointed out to several procedural errors in the handling of the 16 billion Liberian dollar banknotes.

Several former officials of the Central Banks including son of former president Ellen Johnson Sirleaf, Charles Sirleaf were prosecuted in connection with the LRD$16 billion printing.

The Liberian government in 2020 however, dropped charges on the former bank officials after it decided to print additional LRD$4billion banknotes.

The government also dropped charges on Crane currency, a Swedish currency printing firm who was also involved with the printing of the 16billion Liberian dollars (US$106million).

 

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