Liberia: US props central bank to improve functioning
Monrovia, Liberia (PANA) - The government of the United States of America, in coordination with the government of Liberia and international partners, Friday announced a technical assistance program through the U.S. Agency for International Development (USAID) to the central bank of Liberia (CBL).
The aim of the program is to assist the CBL more effectively to perform its core functions of managing the Liberian currency and creating the necessary monetary stability for broad-based, inclusive economic growth, the US Embassy said in a statement published by local dailies.
Given Liberia’s current liquidity situation, in which Liberians are having difficulties acquiring sufficient Liberian dollars (LD) and with many of the LD banknotes in circulation mutilated, the CBL has determined that at least a limited amount of additional LD banknotes is needed to support the Liberian banking system and its customers who need to pay for school, healthcare, and other essentials.
Based on the Liberian legislature’s consent to the CBL’s request for currency printing, the American embassy said USAID would hire Kroll Associates, author of the February 2019 Kroll analytic report on Liberia’s previous procedurally flawed procurement of new banknotes, to assist the CBL in procuring an initial, limited run of additional currency.
This is intended to provide the Liberian people easier access to Liberian dollars within six months through a credible, transparent, and traceable process, the statement stressed.
It noted that this technical assistance included assisting the CBL in undertaking an open and competitive procurement process for currency printing, tracking the shipment of the currency from the printer to the CBL’s vaults, and properly placing the additional currency into the banking system and broader economy.
The last time the CBL printed some 16 billion Liberian dollars (about US$149 million) a scandal ensued over the whereabouts of the money, prompting a mass protest rally before the US Embassy calling for the intervention of the American government.
It was then that USAID hired Kroll Associates to probe the “missing” money issue, but Kroll came up with a report that debunked money going “missing” as it were, citing systemic flaws and procedural errors as being responsible for the chaotic situation.
The US embassy said the technical assistance would support efforts of the CBL to communicate to the Liberian people its role and proper function in supporting a stable economy and banking system that was accountable and transparent to Liberian citizens, and attractive to investment and development.
“It is important to note that USAID support would be limited to technical assistance provided by Kroll Associates. The Government of Liberia will pay all costs associated with the printing and transport of the additional banknotes.
“Regular consultation with representatives of the International Monetary Fund (IMF) in Liberia will also help to ensure that Liberia remains in compliance with IMF program requirements and guidance,” the embassy said.
It added: “As Liberia, like other African countries, moves toward greater use of mobile money, the need for periodic printing of new banknotes should lessen, but establishing best practices for effective and transparent policies will serve the Central Bank of Liberia and the Liberian economy well over the long term.”
The statement noted that a principal aim of the engagement of Kroll, recognized for its expertise in helping clients improve operations, manage compliance and mitigate risks, would be to enhance the central bank’s future institutional capability and internal controls relating to currency printing and management.
J. Aloysius Tarlue, newly-confirmed governor of the CBL, said “we want to give the Liberian people an efficient Central Bank whose operations and policies can support a growing economy that creates jobs and economic opportunities for every Liberian.”
The governor then thanked the government and people of the United States for their assistance which, he said, “is critical to inspiring public confidence in the Central Bank and its operations”.
USAID Liberia Mission Director Sara Walter noted: “The Liberian people deserve a strong Central Bank. The United States is pleased to help the Central Bank strengthen its capacity to manage the country’s money supply in a way that helps families across Liberia better meet their basic needs, and fuels inclusive economic growth.”
-0- PANA PTK/RA 27Dec2019
