CAPITOL HILL -- The House of Representatives has begun formal consideration of a proposal by President Joseph Nyuma Boakai Sr. seeking approval to print additional Liberian dollar banknotes between 2026 and 2030, in what officials describe as a critical move to address looming liquidity pressures.
During its sitting Thursday, the House voted to forward the president's communication to its Committee on Banking and Currency for review and recommendations within the statutory timeframe of the ongoing special session.
The request is in line with Section 6(b) and (c) of the amended act establishing the Central Bank of Liberia, which grants the bank authority to issue and manage the country's currency to ensure monetary and financial stability.
President Boakai emphasized that the proposal seeks legislative authorization not only for routine printing but also for emergency printing capacity, aimed at maintaining adequate liquidity to support public and private sector transactions.
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The request follows growing concerns over the country's declining currency reserves. As of Dec. 31, 2025, only 7.06% of Liberian dollar banknotes remain in reserve, a level the president described as critically insufficient to meet the economy's projected cash needs beyond 2026.
Economic authorities warn that such a low reserve level could disrupt commercial activities and undermine confidence in the domestic currency if not addressed promptly.
President Boakai also noted that since 1999, Liberia has undertaken three major currency replacement exercises. The most recent, conducted between 2021 and 2024, involved printing L$48.734 billion to replace legacy notes valued at L$25.8 billion while also meeting increased transaction demand.
Despite those efforts, several structural challenges persist, including a rising volume of mutilated and damaged banknotes in circulation, declining reserve holdings and continued heavy reliance on cash transactions despite gradual improvements in digital payment systems.
Growing demand for Liberian dollars, driven by economic expansion and efforts to reduce dependence on foreign currencies, has further strained the existing money supply.
The administration argues the proposed printing will help align currency supply with economic growth, replace unfit banknotes under the Clean-note Policy and strengthen national financial programs, including foreign exchange accumulation and gold purchase initiatives.
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Boakai also linked the proposal to Liberia's broader regional commitments, particularly its readiness for monetary integration under the Economic Community of West African States single currency framework.
"This measure is essential to safeguarding monetary stability, sustaining economic growth, and reinforcing public trust in the Liberian dollar," the president said in his communication.
The proposal is expected to face rigorous scrutiny from lawmakers, given Liberia's past controversies surrounding currency printing and concerns about inflationary risks tied to increasing the money supply.
In response to such concerns, Boakai assured the Legislature of the government's commitment to transparency and accountability, noting the Central Bank will provide periodic reports detailing the implementation and outcomes of the program.
The House Committee on Banking and Currency is expected to engage relevant stakeholders and present its findings to plenary within 10 days, setting the stage for a policy decision with significant implications for Liberia's economic direction.
