Liberia: "L$10.9 Billion Circulating Outside Banking System"

May 04, 2017 | Daily Observer; All Africa

Out of a total of L$ 12.7 billion circulating in the monetary system in Liberia, over L$ 10.9 billion remain outside the banking system with a significant part of potentially mutilated bank notes.

Milton Weeks, Executive Governor of the Central Bank of Liberia (CBL), yesterday told the Senate plenary that the total amount of Liberian dollars that has been in circulation since last year is around L$12.7 billion. Governor Weeks disclosed that as at yesterday, the Bank has L$12.7 billion in circulation, adding: "But of that amount, only roughly about L$1.5 billion has been circulating in the banks." This, he said, means the CBL has about L$10.9 billion that is outside of the banks' operations, "and we never see this amount coming in." Weeks said that there was a lot of money outside the banking system; the bulk of which, he said, is referred to as "legacy money," - old currency notes - which are not coming back into the system. This, he said, has limited the ability of CBL, "even if we have turned to the commercial banks to change the money." Governor Weeks said, "Most of the money is not in the banking system. It is possible that most of this money that are outside of the banks, per our calculation, might not be there, because some might have almost been destroyed." Read more on All Africa. Source: All Africa