The Central Bank of Liberia (CBL) and commercial banks have signed a Memorandum of Understanding committing the parties to closely coordinate the implementation of CBL’s currency switch plan.
The MoU, signed on Wednesday, February 9, 2022, commits CBL to regularly share information with commercial banks on the replacement of legacy and enhanced banknotes to ensure a smooth, progressive and transparent exercise. In accordance with the MoU, the CBL will also lead the public awareness effort, while commercial banks, with their agents, including credit unions, currency exchange bureaus and microfinance institutions, will undertake the process of changes across the country. The MoU requires commercial banks to stop paying for mutilated notes once the replacement of those notes begins. CBL and the commercial banks have agreed to meet periodically and share information regarding the progress and challenges of the foreign exchange exercise.
In the meantime, CBL has delegated to Afriland First Bank-Liberia Limited (AFBLL) the use of CBL’s Voinjama facility to issue new currencies and withdraw old ones from rural community financial institutions that are under its control and management. .
CBL Executive Governor J. Aloysius Tarlue, Jr. said:
“Coordination with commercial banks is essential as the currency exchange exercise is done through commercial banks. We assure commercial banks of CBL’s commitment to work with them to ensure a credible trading exercise.
The MoU is part of the High Level Currency Switch 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).
The managing directors of the commercial banks who participated in the signature program have assured the CBL of their full commitment to a transparent foreign exchange process.