Regulatory Alerts2006-04-03
Directive to All Commercial Banks Concerning Mutilated Liberian Dollar Banknotes
The Central Bank of Liberia mandates all domestic commercial banks to accept and exchange mutilated Liberian dollar banknotes at face value. Eligible notes must be partially destroyed but retain at least one visible serial number or signature, after which banks must sort them by denomination and deposit them with the Central Bank. Any refusal to accept these notes or any discount applied during exchange constitutes a violation of the Central Bank of Liberia Act, subject to regulatory enforcement.
March 27, 2006 TO ALL COMMERCIAL BANKS By directive of the Central Bank of Liberia (CBL), all commercial banks operating within the borders of the Republic of Liberia are mandated to accept all mutilated Liberian dollar banknotes from the Liberian public to be exchanged at face value as defined below:
- WEAK LIBERIAN DOLLAR BANKNOTES
- PARTIALLY DESTROYED, BUT WITH AT LEAST ‘ONE SERIAL NUMBER OR SIGNATURE’ VISIBLE ON THE BANKNOTE. These Liberian dollar mutilated banknotes should be sorted by denominations and deposited at the CBL. CBL will give face value for any amount deposited. Refusal commercial banks to accept the mutilated Liberian dollar banknotes from customers or the public in general will be a breach of the Central Bank of Liberia Act establishing the Liberian dollar as legal tender in the Republic of Liberia. Discount of mutilated Liberian banknotes will also be a violation. Accordingly, the CBL will take appropriate action for failure to adhere to this directive.
Dr. J. Mills Jones Executive Governor