There are questions about whether there is not enough new Leone available for the various Commercial Banks. The distribution of the old leone to clients currently taking cash withdrawals from their accounts at commercial banks and the apparent refusal of some business persons to accept the old leone have caused this anxiety, especially as the deadline for its final withdrawal is rapidly approaching.
It may be recalled that the Governor of the Bank of Sierra Leone, Prof. Keifala Kallon, had told citizens that the old Leone will be finally withdrawn in September 2022, but that did not happen because the currency was widely used throughout the nation. He then told the locals that the old Leone will be phased out in March 2023, which is just 3 months from now.
Because of this, it is understandable that businesspeople are hesitant to accept the old Leone. Although many believe that since the Old Leone will cease to be used at the end of March 2023, all Commercial Banks should be paying out the new notes and gradually withdrawing the old ones, the fact that they are still paying their respective customers with the Old Leone speaks volumes about how prepared the Central Bank is to introduce this new currency.
Because of this, it is understandable that businesspeople are hesitant to accept the old Leone. Although many believe that since the Old Leone will cease to be used at the end of March 2023, all Commercial Banks should be paying out the new notes and gradually withdrawing the old ones, the fact that they are still paying their respective customers with the Old Leone speaks volumes about how prepared the Central Bank is to introduce this new currency.
It should also be remembered that the Bank Governor and the then-Minister of Finance were brought before the New Leone by Parliament to give an explanation of the quantity of money printed by the bank and the total amount of money in circulation. According to MPs contacted, neither official was able to provide any information to the MPs. This action was taken to prevent the current scenario, in which commercial banks will be able to pay out the new Leone to their customers and retrieve the old Leone.
Regrettably, there is an abundance of Old Leone on the market in all denominations, even brand-new ones. Since the old currency will become obsolete at the end of March of this year, people have begun to wonder if there is a shortage of the New Leone and, if not, why has the Central Bank been supplying the commercial banks with an insufficient amount of the money.
As things stand, both the old and new currencies are being used to conduct financial transactions throughout the nation, and there doesn’t appear to be any sign that the old currency will soon become obsolete, especially given the fact that a significant amount of it has already been distributed to customers throughout the nation by the Commercial Banks.