The Central Bank of Liberia (CBL) has defended its proposal to print approximately L$79 billion in new Liberian dollar banknotes, arguing that the exercise is essential to sustaining liquidity management, supporting economic growth, replacing deteriorated currency, and meeting key reserve accumulation benchmarks under Liberia’s International Monetary Fund (IMF)-supported economic reform program.
The Bank insists the proposed currency issuance is a strategic cash management and currency replacement operation—not an expansionary monetary policy—and is necessary to ensure the efficient functioning of the country’s banking and payment systems.
The CBL made the case on Tuesday before the House of Representatives’ Joint Committee on Banking, Currency and Judiciary, which has begun a comprehensive technical and legislative review of the proposal as part of its constitutional oversight responsibility.
Appearing before the committee on behalf of Executive Governor Henry F. Saamoi, CBL Deputy Governor for Economic Policy Dr. Musa Dukuly presented the Bank’s technical, monetary, and macroeconomic justification for the proposed currency printing exercise.
Dr. Dukuly emphasized that the request should not be misconstrued as an attempt to inject excess liquidity into the economy or finance government spending through monetary expansion. Instead, he described it as a carefully calibrated currency replacement, liquidity optimization, and cash management initiative designed to replenish depleted vault cash, maintain adequate currency in circulation, improve cash distribution across commercial banks, and replace worn, mutilated, and unfit banknotes.
“The proposed currency printing should not be misconstrued as excessive monetary expansion,” Dr. Dukuly told lawmakers. “Its primary objective is to maintain sufficient currency in circulation, replace unfit banknotes, strengthen operational liquidity, support financial intermediation, and ensure the efficient functioning of Liberia’s payment ecosystem.”
According to Dr. Dukuly, the proposal is underpinned by several macroeconomic and monetary policy indicators, including projected economic growth, inflation objectives, expansion in monetary aggregates, increased transactional demand for Liberian dollar banknotes, reserve accumulation commitments, and the scheduled replacement of deteriorated currency.
He informed lawmakers that Liberia’s economy is projected to expand by 5.5 percent in 2026, up from an earlier forecast of 5.1 percent, reflecting stronger domestic economic activity and increasing demand for cash to facilitate commercial transactions across the economy.
He further noted that inflation is projected at 6.3 percent, requiring prudent monetary policy implementation to preserve price stability while ensuring adequate liquidity within the banking sector and the broader financial system.
Dr. Dukuly also disclosed that under Liberia’s IMF-supported Extended Credit Facility (ECF) Program, the Central Bank is expected to increase the country’s Gross International Reserves (GIR) by an additional US$30 million, equivalent to approximately L$5 billion, to satisfy reserve adequacy benchmarks and strengthen Liberia’s resilience against external and balance-of-payments shocks.
He explained that Liberian dollar banknotes currently held in the Central Bank’s vault have declined to critically low operational levels, limiting the institution’s capacity to meet commercial banks’ cash withdrawal requests and the growing liquidity needs of the economy.
“The volume of currency maintained in the Central Bank’s vault is significantly depleted,” he said. “It has become imperative to replenish vault cash through a structured currency printing exercise to sustain liquidity management operations, improve cash logistics, strengthen financial intermediation, and ensure uninterrupted currency distribution throughout the banking system.”
Dr. Dukuly further revealed that a significant portion of the L$48.734 billion in Liberian dollar banknotes printed between 2021 and 2024 is projected to become unfit for circulation by 2030 due to normal wear and tear.
According to him, the deterioration of those banknotes necessitates a systematic currency replacement program to preserve the quality, security, durability, and integrity of Liberia’s currency while maintaining public confidence in the national payment system.
The Central Bank maintains that the proposed L$79 billion printing program forms part of a broader currency management and liquidity strategy aimed at maintaining adequate currency stocks, improving cash availability across commercial banks, strengthening payment system efficiency, supporting financial inclusion, and ensuring uninterrupted access to Liberian dollar banknotes throughout the economy.
Providing expert testimony before the Joint Committee, former Executive Governor of the Central Bank of Liberia, Elie E. Saleeby, underscored internationally accepted principles of central bank independence and prudent monetary governance.
Mr. Saleeby explained that decisions on banknote issuance are guided by objective economic and monetary indicators—including Gross Domestic Product (GDP) growth, inflation trends, monetary aggregate expansion, reserve adequacy, transactional demand for cash, and the replacement of mutilated currency—rather than political or discretionary considerations.
He emphasized that determining the appropriate quantity and denominations of banknotes in circulation is a core central banking responsibility intended to facilitate commerce, support rural and urban economic activities, preserve financial stability, improve payment efficiency, and reinforce confidence in the national currency.
Mr. Saleeby further noted that effective currency management also requires continuous investment in durable banknote materials, enhanced security features, anti-counterfeiting technology, and efficient cash logistics to safeguard the long-term credibility of Liberia’s monetary system.
Meanwhile, Chairman of the House Joint Committee on Banking, Currency and Judiciary, Representative Anthony Williams of Maryland County Electoral District #2, assured the Central Bank that lawmakers would conduct a comprehensive technical, financial, legal, and policy assessment of the proposal before submitting recommendations to the House Plenary.
Rep. Williams said the committee will evaluate the CBL’s monetary policy rationale, macroeconomic assumptions, reserve management framework, liquidity requirements, fiscal implications, currency demand forecasts, and compliance with applicable banking laws and international best practices.
He stressed that the committee remains committed to exercising its constitutional oversight mandate by balancing the Central Bank’s operational needs with the Legislature’s responsibility to safeguard macroeconomic stability, anchor inflation expectations, maintain exchange rate confidence, strengthen financial sector resilience, and preserve the integrity of Liberia’s banking and monetary system.
The Joint Committee’s public hearing remains ongoing as lawmakers continue receiving technical submissions and expert testimony. Upon concluding its review, the committee will submit its findings and recommendations to the House Plenary for debate and possible legislative action on the Central Bank’s request.
