CBL Submits Board’s Roadmap Addressing Liquidity Challenges
The Monetary Policy Agent, Central Bank of Liberia (CBL), in addressing the growing liquidity challenges facing the national economy on Wednesday, February 10, 2021 submitted Road Maps and a Resolution No. BR-02/2021, representing the decision of the Board of Governors to a currency reform proposal for a comprehensive replacement of the existing family of Liberian dollar banknote in 3-year period to the Honorable House of Representatives.
According to the resolution, Central Bank’s action is in compliance with Section 23 of the Act that established the CBL and based on forecast the total projected amount of new banknotes to be printed is L$48.733 billion.
The instrument, which had its first reading in the plenary of the House of Representatives on Wednesday, February 10, 2021, disclosed that approvals of the currency reform proposal will fast-track the systematic procurement process of printing and delivery of the new banknote in the country and, accordingly, may take six to nine months period.
It can be recalled that on the 12th of January 2021 the Executive Governor of the CBL was invited and appeared before the august body to provide a roadmap, which technically could inform the judgment of the Representatives on the status of the economy.
It was at that visit to the House’s plenary recently that the Central Bank disclosed that it has not had a roadmap for economic recovery, but requested approval for printing of L$27 billion; which the lawmakers denied and requested a comprehensive roadmap to avoid recurrence of liquidity problems.
The comprehensive roadmap and currency reform proposal submitted by the CBL on Wednesday, February 10 2021, for legislative action was forwarded to the committees on Ways, Means & Finance and Banking and Currency to peruse and advise plenary. The Joint Committee is expected to report back to plenary within two weeks, for plenary’s determination.