Liberia returns to use of coins in September

The Central Bank of Liberia (CBL) is expected to launch the first batch of coins and other note denominations on the market in mid-September.

The coins are part of a total authorization of L$48.734 billion to be minted and printed over three years – 2021, 2022 and 2024. Other denominations are L$20, L$50, L$500 and L1,000 $.

The reintroduction of the coins would be the first in Liberia’s post-war history. At various times in the country’s history, coins were issued – beginning in 1847 just after independence – known as the 1 and 2 cent copper coins which were used until 1862 and have then underwent changes.

Its use could break down high monetary denominations into smaller pieces, which would discourage excessive inflation in the prices of goods, as consumers can recover their balance.

Currently, balances below L$5 and L$10 are highly anticipated due to the shortage of fiat currency in the two mentioned denominations. This means that when customers ask for their balance, it is not always available, forcing customers to leave it or buy what they never wanted just to extract value from the money left over. Table.

This alone added to undue price increases.

Senior Economic Policy Director Christopher Wallace and Banking Director Williams Jlopeh, who spoke on the bank-sponsored radio show, “Money Matters” on ELBC on August 3, revealed that the CBL was working on all modalities to see how best they can expedite the process.

“We know the public is concerned about the arrival of the coins and the lower face value, so the next step is for management to try to work with the shipping companies to see who can get the money into the country faster. because they don’t have courier services.

The bank, the official said, is eager for the extra banknotes and coins to arrive. They further disclosed that the bank has done all it takes to get the coins into the country by the end of September 2022.

However, they said that the problem of printing money in Liberia a few years ago had many missteps, so this time they are going to follow all the steps leading to the printing process.

“What CBL does is follow all the steps leading up to printing the money and even infusing the money into the economy,” the officials said.

Bank officials have said that the new notes and coins that are expected in the country very soon are fully documented and as such if they leave CBL employment, this system will be in place.

Officials said the storage of L$5 and 10 had been further increased by the increased demand for smaller denominations due to population growth and the widening scope of economic activities.

It may be recalled that in May 2021, the CBL was authorized by the 54e Legislature to print a new family of banknotes. The Legislature approved the printing and minting of coinage in three phases, specifically 2021, 2022, and 2024.

The CBL in December 2021 introduced the new Liberian dollar currency, starting with the L$100 note to the tune of four billion Liberian dollars.

The amount, according to the CBL, was intended to boost the availability of Liberian dollars in the economy. The second batch of L$4 billion of the new family of L$100 banknotes, the CBL said, was to be introduced in the country in Q1 2022 to begin the phased replacement of mutilated banknotes.

The introduction of the remaining L$100 banknotes and other denominations, including L$20, L$50, L$500 and L$1,000 banknotes, and L$5 and L$10 coins, should take place in the second half of 2022.

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