By: Mohamed M. Sesay
The doubting “Thomases” are now in their muddled realization that such a thoughtful and philosophically idea by the country’s experienced Bank Governor Kelfala Kallon, for a redenomination of the Leones Notes, has started yielding the most anticipated dividend.
This is evident in the remarkable and speedy degeneration of the high exchange rate of the United States Dollars to that of the New Leones.
A permanent fix of such ballooned foreign exchange rate as against the Leone is visible with the introduction of the New Leone Notes.
Before the introduction of the New Leone Notes as the legal tender for the country, the exchange rate of the United States Dollar especially in the black Market was gallivanting around one Million three hundred and ninety thousand Leones (le 1, 390,000), to one million four hundred and fifty thousand Leones (1,450,000).
But fascinatingly enough as you read this article; the exchange rate is encouragingly dropping since the appearance of the New Leone Notes as the country’s legal tender.
One can comfortably state that the exchange rate is now roaming around 1, 340,000 lowest and 1,360,000 highest. This is a trusted process and steady progress indeed. The undiluted certainty is assured as long as the foreign exchange rate has started stumbling down against the Leone. And inflation rate on commodities will be also pinned under control.
However, distrusted folks with ill-gotten motives, want to thwart the surfacing gains the New Notes have started making. It is evident that there are certain segmented Sierra Leoneans whose gratification is to try by all their might, in stopping the Leone to be in circulation. Such action is not only tantamount to blackmailing the government, but also depriving other citizens of the Leones.
The most astonishing aspect is when the Bank Governor disclosed on the radio that eight hundred billion NL 800 million (800billion) of the New note is in limbo. Which means, it is no longer in circulation?
In his radio discussion, Bank Governor, Prof. Kelfala Kallon also dispelled malicious rumors about the shortage of the New Leone Notes. He gave a glad tiding assurance that there are enough Leones to serve the country’s economy for the next 5 years. The Governor was however perturbed realizing that just in two weeks when the new notes were introduced, NLe 800 million (800billion) has been hoarded by segmented Sierra Leoneans, preventing the aforementioned sum not to be in circulation.
The Bank Governor considered such a situation a heinous threat to the financial system of Sierra Leone. Such intending threat has precipitated the Bank Governor to be left with no option but to bring in New Cash Management Systems. The Cash Management System is geared towards making sure that the country never gets to such an unfortunate financial situation inflicted by certain unpatriotic Sierra Leoneans. As disclosed by the Bank Governor, the Cash Management System is applicable within other jurisdictions in the sub-region and it has been efficaciously working in Ghana and Nigeria.
“We launched the new currency on the 1st of July and by the 12th of July 2022; we realized that eight hundred billion New Leones has been taken out of the banking system. Perhaps people have started doing what they did in 2020, to put the country’s financial system to its knees. We have decided that the average Sierra Leonean did not need thirty million Leones to spend in just a week which is the more reason the 30 million restrictions per week for individuals and 100 million for institutions were introduced”, he said.
With the continuous stratagem by selected folks preventing the Leones not to be in circulation, the expeditious necessity has now been overdue for the Bank Governor to introduce the New Financial Management System in place. Citizens still have the strongest conviction that with this redenomination process, the ill financial situation will soon be restrained under permanent control. As the New Leone has systematically started bridging the gap in the foreign exchange rate, the inflation rate on commodities will also be put under control soonest.
