The Liberian President George Weah has mulled plans to print new currency notes worth about L$ 34 Billion in line with advice from the Central Bank of Liberia.The decision according to government sources is aimed at stemming the runaway inflation  the Liberian economy is facing presently. The Central Bank of Liberia is said to have informed the President advising that the Liberian economy may be in serious problem if nothing is done urgently. This is because of the high rate of unaccounted local currency infused into the economy that is causing high inflation, thus the recommendation for the printing of new local currency to replace existing ones.

Observers say that President Weah’s quest to print new bank notes may not be unconnected with the controversies trailing the country’s financial system especially the central bank due to the issues relating to the executives of the apex bank who were facing trial for illegally printing over L$16 billion during the regime of former President Ellen Johnson-Sirleaf.

While notifying the country’s Senate about the decision, President Weah notes that “the decision needs to be made now to address this issue that impacts the economy, it is important to note that the printing of new banknotes will require your approval, in accordance with Article 34(d) through the 1986 Constitution,” he added. Though the CBL has not defined any set values or pattern to limit the printed amount of currency (new money), it should be enough to provide services, transfer goods and also regain the value of currency that is in circulation.

President Weah told the Senate that in view of the Central Bank’s advice, it became imperative to discuss the matters with the apex bank for their approval to on the way forward to enable the CBL to move in a timely manner to conclude arrangements for the printing of the [new] currency. After the president’s address to the Senate, a motion was moved to direct the Senate committee on Banking and Currency to appropriately advise plenary.

Critics however, say that the problem plaguing the Liberian economy is beyond printing of a new currency, the challenges are mostly fiscal indiscipline thus printing of new bank notes may not have the desired effects. Moreso, there are allegations that President Weah’s notification to the Senate was simply a window dressing because the apex bank already had the new currency printed. This claim could not be independently verified as at the time of going to press. Whether the printing of the new currency would help address the challenges being faced by the country is left to be seen.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.