In Other News…

• The Central Bank of Iraq has added a feature to its banknotes to protect them from bacteria and viruses, including the coronavirus strain. The feature is not named, but is described as a biological pesticide developed by international companies specialised in printing banknotes, and is presumed to be incorporated in a coating/varnish. The notes containing the feature will be put into circulation soon.

• Liberia’s House of Representatives has authorised a new family of banknotes and the introduction of two new coins. The notes will be in denominations of L$20, 50, 100 and 500. The L$5 and L$10 of the current series will be replaced by coins. A request to introduce a new high denomination L$1,000 was rejected.
  
  

A contract price of US$45.5 million has been placed on the new series (albeit that included the L$1,000). The total value of new notes and coins to be put into circulation is L$48.7 billion (US$280 million).

The new notes are being produced to overcome chronic shortages of currency. To avoid a repetition of the mistakes of the current series (introduced in 2016), including allegations of L$16 billion in missing currency, the House outlined several measures that the Central Bank of Liberia (CBL) needs to put in place before, during and after producing the new currency.

Payment for the new notes and coins will be overseen by the legislature. The CBL is required to ensure adequate logistics are in place to manage the currency reform process, develop a currency management strategy with a reformed and strong internal control system and ensure an internal financial assistance audit, as well as risk mitigating measures to safeguard the reform process.

The House also requires CBL to notify the legislature of the actual volume and value of currency printed and imported into the country at regular intervals from 2021 to 2023, with note replacement carried out only through the CBL, and with the commercial banks and designated financial institutions regulated and supervised by the CBL.