CBL Announces Arrival of L$4 Billion New Banknotes

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CBL

The Central Bank of Liberia (CBL) has announced the arrival of four billion Liberian Dollars Banknotes in the country to ease the liquidity pressure on the country’s economy.

The banking system in the country has been experiencing dire liquidity problems, including mutilated and insufficient banknotes to meet depositors’ demand for cash.

According to a release from the bank, the four billion is in new banknotes and is safely secured in the vaults of the CBL. The release also stated that the bank is working in collaboration with Kroll. Kroll Associates Inc, a global investigative firm and a global risk solutions provider.

“The two institutions will work in the coming days to undertake a full technical validation process of the new banknotes to ensure they comply with the contractual specifications,” the release said.

Kroll Associates was engaged as part of the United States Agency for International Development “USAID” technical assistance program to the CBL to ensure procurement process, transparency, and shipment of the new Liberian banknotes from the printer to the CBL vaults is secure. The CBL release added that the International Monetary Fund (IMF) was also consulted before the printing of the new banknotes to ensure compliance with its Liberian program.

It may be recalled, Kroll uncovered systematic inadequacies in procurement processes and record-keeping at the CBL when investigation concerns surrounding the printing of the 16 billion new Liberian banknotes in September 2018. It was therefore agreed to engage Kroll based on their experience with CBL, to address the loopholes thereby preventing the reoccurrence of any such lapses.

The CBL in its release also stated that it used procedures consistent with international best practices in the procurement process, to secure the most competitive bidder to print the banknotes.

“After obtaining legislative approval, the CBL first used enhanced procedures consistent with international best practices in the procurement process to secure the most competitive bidder to print the new banknotes. It can be recalled that, on March 12, 2020, the CBL issued a request for proposals, with April 8, 2020, set as a deadline for response to the request from potential suppliers.

Upon receiving proposals from many potential suppliers and rigorous evaluation process, a specially formulated CBL procurement Committee recommended Crane as the preferred supplier to print the New Liberian Dollars Banknotes.”