The Central Bank of Liberia (CBL) and commercial banks have signed a memorandum of understanding (MoU) committing the parties to closely coordinate in implementing the CBL’s currency changeover plan.
The MoU, signed on Wednesday, February 9, 2022, commits CBL to regularly share information with commercial banks in the replacement of legacy and enhanced banknotes to ensure a smooth, gradual and transparent exercise. In keeping with the MoU, the CBL will also lead the public sensitization effort, while commercial banks, together with their agents, including credit unions, foreign exchange bureaus and microfinance institutions, will undertake the currency exchange process across the country. The MOU requires that commercial banks stop paying out mutilated banknotes once the replacement of such banknotes commences. CBL and the commercial banks agreed to meet periodically and share information regarding the progress and challenges in the currency exchange exercise.
Meanwhile, the CBL has delegated Afriland First Bank-Liberia Limited (AFBLL) to use CBL’s Voinjama Facility to issue new currency and withdraw old ones from rural community finance institutions that are under its control and management.
CBL Executive Governor, J. Aloysius Tarlue, Jr., said, “Coordinating with commercial banks is key because the banknotes exchange exercise takes place through the commercial banks. We assure commercial banks of CBL’s commitment to work with them in guaranteeing a credible exchange exercise.”
The MoU is part of the High-Level Currency Changeover Implementation Plan, approved by the CBL Board of Governors as a requirement under the Extended Credit Facility (ECF) program with the International Monetary Fund (IMF).
Chief Executive Officers of commercial banks who attended the signing program assured the CBL of their full commitment to a transparent currency exchange process.