Is There Shortage Of The New Currency?

By Edwina Sia Janga

Concerns are being raised as to whether the new Leone is in short supply to the various Commercial Banks. This concern has been due to the current distribution of the old Leone to customers withdrawing cash from their accounts from the Commercial banks, and the apparent refusal of some business people to receive the Old Leone, especially as the time frame of its final withdrawal is fast approaching.

It could be recalled that the Governor of the Bank of Sierra Leone, Prof.KelfalaKallon, had informed residents that the date for the final withdrawal of the old Leone would be in September 2022, but that did not materialise, as the said currency was heavily in circulation across the country. So he then informed residents that the phasing out of the old Leone will be completed in March 2023, which is barely 3 months from now. It is therefore not surprising that business people are reluctant to accept the old Leone.

Many are of the view that since the date for the end of the use of the old Leone is at the end of March 2023, all commercial banks should be paying out the new notes, and slowly withdrawing the old ones, but the fact that they are paying these old notes to their respective customers, speaks volumes of the preparedness of the Central Bank to roll out this new currency.

It could also be recalled that Parliament had earlier, before the commencement of the use of the New Leone, summoned both the Bank Governor and the then Minister of Finance to explain about the quantum of cash printed by the bank, as well as the amount of cash in circulation. Both officials were unable to tell the MPs anything. According to MPs spoken to, this action was to forestall the current situation, where commercial banks will be able to pay out the new Leone to their customers and retrieve the Old Leone. Unfortunately, the market is flooded with the Old Leone, in all denominations, including brand new ones. This has made many to ask whether there is a shortage of the New Leone, and if not, why has the Central Bank been supplying inadequate quantity of the currency to the commercial banks, especially as the old currency will become obsolete at the end of March this year?

As things stand, both the old and new currencies are being used to do financial transactions across the country, and there does not seem to be any indication that the old currency will be obsolete soon, especially as a lot of it has been, and are still being dished out by the commercial banks to customers across the country.