1. Computer Science Group (4) Four Presentation:
Names of Presenters:
• Group Leader: Raihanna Jalloh
• Group Member:Abdulia G Banagura
• Group Member:Maada Walters Brewah
• Group Member: Rollings
• Group Member: Alhaji Vamunya Sheriff
• Group Member:Hassan Philip Dambo
• Group Member: Alfred U Kanu
2. The Re-denomination of Sierra Leone Currency:
The purpose of this study is to examine the impacts of redenomination on inflation, currency
exchange, economic growth and export value. While decisions on redenomination and design of
currencies may seem more technical than political, a government’s control and administration of its
currency and transactions within its boundaries are a few examples of the hallmarks of the modern
nation-state. There are negative and positive outcome of the re-denomination of which the result
of the study indicates that inflation and economic growth were affected significantly by
3. • Negative Effect on the Redenomination currency:
Sierra Leone is among developing countries in Africa, and could be located on the West coast of
West Africa. It partly depends on it minerals mined in the country for exchange rate, which brings
about giving it currency printed values from Switzerland to the company of De La Rue.
According to the board of governors of the reserve system in Switzerland, each year, the Federal
Reserve Board projects the likely demand for new currency, and places an order with the
Department of the Treasury's Bureau of Engraving and Printing, which produces currency and
charges the Board for the cost of production. Sierra Leone is not an exemption to the re-
denomination of currency in the world. It has been so by the then government of Ex-president
Koroma, of which he changed the then currency of the Tejan Kabba, which is seen as backwardness
of the country according to developmental analysis which are canon to be see when a country is
4. • Negative Effect on the Redenomination currency:
Sierra Leone’s economy contracted by 2% as the COVID-19 pandemic led to slowdown in all
sectors following global supply chain disruptions and lockdown measures. GDP per capita fell by
4% in 2020, reversing some of the recent gains in poverty reduction. Real GDP is expected to
rebound by 4.2% in 2021, reflecting the easing of COVID-related restrictions as well as the
implementation of the government’s fiscal response to the pandemic. On the demand side, growth
will be driven by domestic demand (as external demand remains subdued), with private
consumption and investment contributing the most.
Tracing what has been going on, inflation fell to 8.9% in March 2021, before rising sharply to 10.2%
by end June, reflecting an increase in food and fuel prices. Food inflation reached 17.1% in June
2021, well above its pre-COVID-19 level of 9.9%. The current account deficit is expected to improve
by 1 percentage point to 16.4% of GDP in 2021, reflecting higher export receipts from the mining
sector. In 2021H1, total public expenditure reached 12.3% of GDP while total revenue collection
totaled 6.9% of GDP. The overall budget deficit is projected to
5. • Positive Impact on the Redenomination Currency:
The value of the domestic currency in the foreign exchange market is a key consideration for
central banks when they set monetary policy. Directly or indirectly, currency levels may play a role
in the interest rate you pay on your mortgage, the returns on your investment portfolio, and the
price of groceries at your local supermarket, and even your job prospects. In sense, the rate at
which prices of goods are inflating because of fuel crisis should have noticed prior to the
involvement of the re-denomination.
On the other part of it, the government sees the process as a means of downsizing the old currency
currency because of it many values it has in it, and yet it is still less to the exchange rate of the
dollar in the market. On the side of the government, the currency is now seen as the way it should
be over what the later was taken in the exchange rate.
6. • Positive Impact on the Redenomination Currency:
Looking at the merchandise trade (refers to a nation's imports and exports); In general, a weaker
currency makes imports more expensive, while stimulating exports by making them cheaper for
overseas customers to buy. A weak or strong currency can contribute to a nation's trade deficit or
trade surplus over time.
For example, assume you are a U.S. exporter who sells widgets at $10 each to a buyer in Europe.
The exchange rate is €1=$1.25. Therefore, the cost to your European buyer is €8 per widget.
Now let's say the dollar weakens and the exchange rate is €1=$1.35. Your buyer wants to negotiate
a better price, and you can afford to give them a break while still clearing at least $10 per widget.
Even if you set the new price at €7.50 per widget, which is a 6.25% discount from your buyer's
perspective, your price in dollars is $10.13 at the current exchange rate. A weak U.S. dollar allows
your export business to remain competitive in international markets.
7. • Conclusion:
The hazard of estimation also leaves open the possibility, again, for political considerations to
affect redenomination: once the redenomination dam has been broken, it becomes a more viable
political option. This assertion Could Be tested in future work by using case studies of (the
consideration of) redenomination, as well as assessing public opinion data before and after Various
Rounds of redenomination (or in countries with similar economic problems, but with more or less
redenomination experience) . So to avoid such, they brought the idea to avoid what is for the
people are to be maintaining for the people.