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7.5 Bn LD Requested and NOT "75 billion"

MONROVIA – November 10, 2020:The Central Bank of Liberia (CBL) announced that it is taking measures to ensure that adequate Liberian Dollars are available for easy access by the population in the country.

 

To address the short term liquidity need of the financial sector, it can be recalled that the Management of the CBL requested the printing of additional Liberian dollar bank notes. The printing request was based on forecast of about L$7.5 billion (seven billion five hundred million Liberian dollar) triggered by several factors to include economic and population effects, de-dollarization policy, mutilation effect and precautionary motives. However, the Management of the Bank was authorized by the 54th National legislature to print only L$4.0 billion (four billion Liberian dollars). This amount was inadequate to address the increasing liquidity demand of the short to medium term. Therefore, the need for the printing of more Liberian dollars cannot be overemphasized.

 

Of the 4-billion Liberian dollars printed in 500 banknotes, only 50-percent of this amount has been infused in the market which represents the ratio of about 1-to-24 of the L$500 banknotes series (recently printed) to the old banknotes in circulation. The Bank is presently working out modality to infuse additional Liberian dollar liquidity into the commercial banks to address the current challenges of accessing Liberian dollar in the economy, but will do so gradually and strategically consistent with its objective which is aimed at protecting the purchasing power of ordinary Liberians.

 

The Bank recognizes the urgency to print money in response to the increasing demand for Liberian dollar Liquidity. The Bank also attributed the current Liberian dollar liquidity problem to several factors, including the effects of several negative shocks, such as COVID-19 and seasonal liquidity demand, but has begun working with various stakeholders including the International Monetary Fund (IMF), United Stated Agency for International Development (USAID) and the National Legislature to find a lasting solution.

 

The Central Bank renewed its call to the general public to utilize and accept other medium of payments, like mobile money and Point of Sale (POS) to carry out daily financial transactions in order to ease the burden of cash driven economy. The Bank also calls on the business community as well as financial institutions to be supportive and work with the Government to alleviate the current liquidity problem.

 

 

For more inquiries contact:

 

Cyrus W. Badio

Head of Corporate Communications

Central Bank of Liberia

Email: cwbadio@cbl.org.lr