By Alpha Abu
The country’s Leone currency notes are to have the last three zeroes struck off in what is a comprehensive redenomination process that is to be initiated by the Central Bank. This was disclosed by the Governor of the central bank, Professor Keifalla Kallon during a press conference in Freetown on Wednesday 12 August 2021.
The last three zeroes on the Leone notes are to be removed; and smaller denominations produced in an exercise that would also involved the minting of huge amount of coins. In the new monetary arrangement, one hundred dollars would fetch an exchange rate value of one thousand Leones. According to Prof. Kallon, the redenomination of the Leone has nothing to do with the value of the dollar but rather borne out of the need for change from the larger banknotes that had drawn criticisms in various quarters, and for a stabilisation of the economy.
The governor said the new notes will all be of equally smaller size, in line with international standards, but will still carry the same colour and features of the present notes that would have to be eventually withdrawn.
This new initiative, Prof. Kallon believed would generate more confidence in the economy of the country. He asked people not to panic as they took the decision after thorough research and consultations involving experts.
He admitted that the process itself initially can be expensive but that the benefits outweigh the cost. He said the new monetary system will ensure more money in value is carried in wallet for less number of notes, thereby limiting bulkiness, insecurity and inconveniences. This, Prof. Kallon pointed out would create what he called macro-economic stability unlike the presence of higher denominational notes that he said reduces the confidence of those he described as the “economic actors”. He spoke about engagements with the Managing Directors of commercial banks via zoom to ensure preparedness and a smooth transition process.
The governor said the bank will embark on an extensive public sensitisation programme for people to fully grasp the essence of the revised banknote initiative. He said the present monies in circulation would have to be withdrawn and replaced by the new currencies. The new notes and coins are to come into circulation 90 days after publication of such notice in the Government Gazette. Sierra Leone’s currency denomination has changed over the decades, with smaller denominations disappearing and replaced by bigger ones.
Copyright © Politico Online (13/08/21)
