MONROVIA – Commercial banks operating in Liberia are heavily overwhelmed with mutilated local banknotes due to the alleged refusal of authorities of the Central Bank of Liberia (CBL) to release new banknotes on the market.
The situation is creating serious embarrassment between bank tellers, clients or customers, as well as marketers or business owners, who continue to troop in to deposit or withdraw their money.
There is normally an influx of customer at commercial banks, particularly during the festive season in Liberia.
At some banks visited, several clients and customers complained of tattered money being served to them by tellers assigned at these banking institutions.
FrontPageAfrica visited some of the banks including GN Bank Liberia Limited (Broad Street), Access Bank Liberia Limited (Johnson Street), and Afriland First Bank (Crown Hill), among others to ascertain customers’ concern and the banks’ response towards these concerns.
‘Rotten’ monies served
“I just started checking my money, look at how many dollars tear already. So, so plaster on the money. We’re checking to take the rotten money out to give it back to them.”
– Bendu Foday, a customer who had gone to withdraw from her account.
Clients and customers who had trooped at various commercial banks visited were frustrated over the disbursement of mutilated Liberian dollars banknotes to them by tellers.
Some clients and customers had gone to these commercial banks to also receive their salaries.
Not a single client or customer vacated the tellers’ booth or window without sorting out the wads of banknotes given them.
In a very disappointing mood, clients and customers packed out mutilated banknotes in various denominations, and handed back to tellers.
“I just started checking my money, look at how many dollars tear already. So, so plaster on the money. We’re checking to take the rotten money out to give it back to them,” said Bendu Foday, a customer who had gone to withdraw from her account.
An elderly woman believed to be in her early 70s stood in the queue for several hours to receive her salary from the bank only to realize that almost all of the over L$30,000 banknotes were mutilated.
“All the money tear; see my son,” Anna Bartee lamented.
Time wasting
“Look at the money they are giving us, stink, dirty and tear-tear,” he said. “What can we do with this kind of money. It is the banks that is supposed to be collecting rotten money to give out new ones, but they are rather giving us the tear-tear money. The entire L$15,000 they gave me, all is spoiled, then they are telling me they can’t change it.”
– Edward P. Massaquoi, a local businessman
The disbursing of mutilated banknotes at various commercial banks is time consuming.
The slow pace at which tellers continue to serve or change mutilated banknotes disbursed to customers, makes more people to remain either sitting or standing for several hours, booking spaces in the queues or leave for other branches.
The number of customers to be served before the closure of the banking hours which runs from 9AM to 2PM in keeping with Central Bank of Liberia (CBL) regulations has drastically dropped as a result of the situation.
“Since this morning, I have not served up to 20 customers because everybody just complaining that the money is torn,” a teller who preferred not to be named told FrontPageAfrica.
Government employees, who either boycotted, requested an excuse or sneaked out of their workplaces to receive their salaries were also disappointed, following the payment of mutilated banknotes to them.
Their quest to hastily collect their salaries and return to work was greeted with frustration.
“My brother majority of the money is rotten-we, tried to look inside and the ones we can’t hold, we will give it back to them to change it. I’m supposed to be back at work. Since 10 AM, I’ve been here. It’s after 1 PM now,” Paul Mulbah said wearing a disappointed look.
He continued: “If you go on this side, tellers will tell you no Liberian dollars, if you come so, they will tell you no United States dollars.”
Edward P. Massaquoi, a local businessman could not hold his peace over the situation. He condemned the bank for not being considerate of the money being served to customers.
“Look at the money they are giving us, stink, dirty and tear-tear,” he said. “What can we do with this kind of money. It is the banks that is supposed to be collecting rotten money to give out new ones, but they are rather giving us the tear-tear money. The entire L$15,000 they gave me, all is spoiled, then they are telling me they can’t change it.”
Rejection of mutilated notes
The rejection of mutilated Liberian banknotes is not unique to commercial banks operating in Liberia.
Citizens exchanging foreign currencies at local foreign exchange bureaus and marketers are also rejecting the defaced Liberian dollars.
Marketers and customers are engaged in heated debate or argument in some market places over business transactions through the use of the mutilated banknotes, something which makes the usage of the ragged and faded money more challenging.
The situation is compelling citizens exchanging their foreign currencies at exchange bureaus, or elsewhere to keenly observe ‘one-by-one’ and give back notes that are disfigured.
Seeking government’s intervention
The current situation of the multiplicity of maimed Liberian banknotes in the country continues to worsen the already declined Liberian economy.
Citizens want the government to intervene to arrest the matter.
They predicted confusion that would lead to chaos if government delays in finding a remedy to the situation.
“Government needs to take the rotten money from the market and bring the new monies from the CBL. The money is very rotten. If you go to the bank, the people will tell you that’s the money they get; sometimes they say, system is down. Government should put money in the bank,” Paul Mulbah maintained.
The Invisible new banknotes
The visibility of the L$16 billion banknotes printed prior to the expiration of the tenure of ex-Liberian President Ellen Johnson-Sirleaf remains uncertain.
Despite the surplus printing of additional L$10 billion by the Executive, without the acquiescence of the Legislature in 2017, the visibility of the new Liberian banknotes is scarce.
“To look for money you suffer, to deposit your own money is tedious. To get your own money from the bank again, it’s headache. We can’t even spy or lay our eyes on the new money the people printed. Where are we heading my people,” an elderly man who did not call his name stated.
“I can confirm to you that there is a shortage of money at the bank right now. This is because the CBL is not giving out monies to the banks. Our request for monies was made ever, ever since; but up to now, there is no money.”
Manager of a local Commercial Bank who requested anynomity
What are commercial banks’ authorities saying?
It appears that since the admittance of the Government of Liberia (GOL), through the Minister of Information, Cultural Affairs and Tourism, Lenn Eugene Nagbe, of using donor funds deposited at the CBL, commercial banks operating in Liberia are also losing trust in the CBL.
During the festive season, fresh Liberian banknotes are normally seen with money exchangers or released to commercial banks, but up to present, the CBL is reportedly holding onto these banknotes.
Authoritative sources at some commercial banks, who spoke to FrontpageAfrica on condition of anonymity, disclosed that requests made to the CBL by authorities of commercial banks for the release of monies have been downplayed.
“I can confirm to you that there is a shortage of money at the bank right now. This is because the CBL is not giving out monies to the banks. Our request for monies was made ever, ever since; but up to now, there is no money,” a source at one of the commercial banks confided in FrontPageAfrica.
The source continued: “Another factor is that people are no longer trusting the banking system; they believe in keeping their monies to their houses. Because you can’t put your money in the bank and you can’t get it out. The money is no longer in the banking sector again. Maybe, they are creating artificial shortages to print new money”.
CBL tightlipped
Authorities of the Central Bank of Liberia (CBL) appear to be tightlipped on the situation at various commercial banks.
When contacted on Wednesday, the Head of the Communication Unit at CBL, Mr. Cyrus Wleh Badio, did not comment on the accusation leveled against the CBL by some commercial banks. He, however, said the CBL will next week publish a report on the state of the Liberian dollar banknotes.