By Amin Kef Sesay
As part of its commitment to support the development of Sierra Leone, Veritas Professional Services on the 7th April 2022 held an Economic Dialogue on the redenomination of the Leone and its economic impact at the New Brookfields Hotel Conference Hall.
Dr. Claudius Williams-Tucker, Managing Partner of Veritas Professional Services who served as the host, revealed that they invited the Governor of the Bank of Sierra Leone to explain to key stakeholders in the financial and other sectors the impact of the redenomination on the economy.
He furthered how the impact of the redenomination will be positive as empirical evidence has shown but how that will work they don’t know. He thanked the Bank Governor, Panelists who deliberated on key issues bordering on the redenomination of the currency and the participants.
Mrs. Blanche Gooding, President of the Institute of Chartered Accountants, congratulated the leadership of Veritas for organizing such an event and added that the value of the Leone has received knocks against the dollar, the rate of inflation continues to rise, and the fuel price increase has caused an increase in the prices of commodities. “These are impacting the lives of people negatively,” she said and added that it is expected that the redenomination will help address these challenges in the national economy.
“I hope that the redenomination will give the Leone its required value,” Madam Gooding said. She continued by pledging the continued support of her institution to improve the lives of the people by promoting accountability, transparency and attracting investments for sustainable economic goals.
Professor Kaifala Murana Kallon, the Central Bank Governor, in his address stated that redenomination is bound to create genuine concerns from the population which is why the bank is doing lots of public engagement before circulating the new currency. He revealed that there will be a transition period of ninety days whereas prices of old and new currencies will be displayed and electronic payment systems and equipment in financial institutions and business places must have been changed within the period.
Professor Kallon noted that all debts and transactions will be charged in the new currency. “After the parallel long period the current currency will seize to exist and the new currency will take over. Prices of all goods and services will be deflated as three zeros will be slashed,” he remarked and went on to state that the new Leone will have the same purchasing power as the old Leone. The Central Bank, he said is working with Paramount Chiefs in its sensitization drive, which is taken across the country. “After the banking system has recalibrated their accounting system to accommodate the new currency and after a thorough nationwide sensitization, the new redenomination note will be circulated,” he revealed and further stated that “We believe at the Bank of Sierra Leone that this is the time to reset the Leone.
We do not need to follow the old policies that had been adding zeros to the Leones. When a currency is redenominated and people get its value there is no need to re-substitute that currency. When the value of the Leone is so low people charge in currencies with higher value like the dollar, which is why we are still grappling with dollarization. Money has no intensive value; all we need money for is to serve as a medium of exchange,” he said.
The Bank Governor furthered that redenomination can boost the confidence of people in the economy and its impact will be positive. “The redenomination of the Leone will enable it to appreciate against the dollar. The Leone will have more value and will better serve the economy. Redenomination goes with the strength of institutions and laws for improvement in the economy,” he added.
Participants interviewed thanked Veritas Professional Services for creating an eye-opener to the redenomination process. Veritas is positioned to become the leading local firm in Sierra Leone delivering distinct value beyond its clients and stakeholders expectations at any time through the provision of a full range of cost-efficient, high-quality service, optimization of modern technology, and efficient business networks and with proven technical support from the EY Network.
Veritas Professional Services is committed to the provision of high-level and reliable professional services solutions to businesses in Sierra Leone through a combination of excellent client satisfaction coupled with consistent efficient operations and high-quality services.
