Several factors, including challenging road conditions and the past presidential and legislative elections, necessitate the extension of the deadline for retrieving legacy banknotes from Liberia.
MONROVIA, April 2, 2024: The Central Bank of Liberia (CBL) has announced the extension of the 31 March 2024 deadline for the currency exchange exercise by six weeks, up to 15 May 2024.
According to a press release issued Monday, 1 April 2024, the CBL Board of Governors, at its emergency meeting held on Friday, 29 March 2024, resolved to extend the deadline for terminating the legal tender status of the old banknotes.
It said the CBL Board of Governors resolved to continue the exchange exercise through the commercial banks and Rural Community Finance Institutions (RCFIs).
“Despite the progress, the March 31st deadline was impacted by several factors, including the challenging road condition to counties in the Southeast and Lofa County,” the release said.
It added that other factors included the presidential and legislative elections, the intensity of the run-off presidential election, and the transitional process.
According to the release, the Bank was cautious about moving cash across the country during these situations.
It detailed that the extension means that the old money, known as Liberian Series 1 or LS1 and Liberian Series 2 or LS2 banknotes printed before 2021 remains legal tender until 15 May 2024 and can be used to buy goods and pay for services in Liberia.
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After the new deadline, the CBL said the old banknotes will not be accepted for exchange at any commercial banks and RCFIs. The exchange exercise will continue only at the CBL facilities across the country.
“The CBL, therefore, urges the public to take advantage of this extension to exchange their old banknotes and calls on the business community to continue to accept the old banknotes and deposit them at the commercial banks and RCFIs in exchange for the new currency,” the release noted.
Meanwhile, the Bank has extended its appreciation to all stakeholders, and more importantly the Executive and the Legislature for their support in this national endeavor.
“The Bank looks forward to the full cooperation of the public with this new deadline to ensure a successful completion of this exercise,” the release said.
The national program to retrieve the legacy banknotes from the market was launched before the just-ended legislative and presidential elections.
But the exercise faced some delays due to the election, as well as bad road conditions.
On Monday, this paper reported that CBL authorities were about seeking President Joseph Nyumah Boakai’s approval to extend the ongoing cash retrieval exercise across the country.
The CBL on 22 October 2022 commenced the nationwide campaign to replace the legacy banknotes and coins with the new family of banknotes and coins.
In keeping with the 54th Legislature’s mandate, the initiative was launched to be carried out through commercial banks and other regulated financial institutions to retrieve the legacy banknotes.
In July 2023, the authorities set 31 March 2024 as the cut-off date for the termination of the legal tender status of the old banknotes.
Along the way, some major national activities including elections, presidential transitions, and bad road conditions, appeared to have impacted the timeline set for cash retrieval across the country.
Despite the challenges, this paper has learned, the CBL has significantly retrieved a large amount of its targeted old banknotes, but there is still a large volume of old banknotes in circulation.
In recent weeks, some members of the public have been raising concerns about not being able to meet the CBL deadline of 31 March due to their location in remote places and the absence of commercial banks.
The NewDawn newspaper has learned that the CBL has considered these public concerns and wanted President Boakai to approve an extension of the exercise.
Through a joint resolution in 2021, the 54th Legislature authorized the CBL to print and mint a new family of currency worth LS48,734,000,000.00, based on the Bank’s request. https://thenewdawnliberia.com/cbl-seeks-extension-of-old-cash-retrieval/
CBL should have given way to produce revenue on actuals prior to asking for legislation to print 48+ billion LRD. You cannot use constitutional legislative pocket to retrieve money from entrepreneurial activities. Government operates on accruals not cash. As the matter of fact, government is the supplier of cash on demand when production is equally batched up with supply to generate the cost money to print money,
We will no longer allow Liberian incorporate to be pinned down by unbalanced intervals between budgetary appropriations, neither in the Executive, Judiciary, nor Legislative. After all it is local business that assures the needs of Liberia. I am gone do not call me back without a reason.