Monrovia -- The Central Bank of Liberia asked lawmakers Tuesday to authorize printing of L$79 billion in new banknotes, including a new L$2,000 denomination, at an estimated cost of US$11.56 million between 2026 and 2030.
CBL Executive Governor Henry F. Saamoi presented the proposal before a joint Senate committee hearing, arguing the currency expansion is driven by four key pressures: economic growth and rising transaction demand, the need to replace mutilated notes, the goal of strengthening foreign exchange reserves through a gold purchase program, and the need to maintain a Liberian dollar buffer adequate to absorb demand shocks.
"Our proposal is to print L$79 billion to cover the period 2026 to 2030, but we want to note that this presents less than 40 percent of the current money supply, with the United States dollar still dominating transactions in the country," Saamoi told the Senate Joint Committee on Ways, Means, Finance and Budget, and Public Accounts and Audits.
The governor said Liberia recorded 5.1% economic growth in 2025 and that continued expansion requires adequate currency in circulation. He told senators that an estimated 7% of banknotes become mutilated annually, a figure he warned could rise over time, and noted that the current currency batch, printed between 2021 and 2024, has a lifespan of only three to four years, making early replacement planning essential.
Follow us on WhatsApp | LinkedIn for the latest headlines
On reserves, Saamoi said the CBL wants to build liquidity to purchase gold as a diversification strategy. "We are trying to strengthen our reserve position to move into diversifying our reserves by including gold and that will mean we will need liquidity to buy gold that will come as reserve," he said. He also stressed the importance of maintaining a currency buffer. "The growth in the economy can exceed projections, and if that happens, there is a demand for currency," he added.
The CBL also disclosed it intends to avoid printing during the 2029 election period, citing concerns about public perception and the risk of fueling economic instability during a politically sensitive cycle.
On the path toward regional monetary integration, the CBL Governor said Liberia's long-term ambition to join the ECOWAS single currency regime requires gradual de-dollarization. He said reducing reliance on the U.S. dollar and strengthening the Liberian dollar are key prerequisites for meeting regional monetary criteria, framing the currency expansion as part of a broader structural transition.
He outlined a two-phase procurement strategy, proposing an initial L$14.7 billion print run for 2026 before returning to the Legislature for subsequent authorizations. He said the phased approach was designed partly to protect Liberia's standing under its International Monetary Fund program. "You don't want to undermine the public confidence position under the IMF/ECF program," he said. The full process, he added, would involve legislative authorization, documented procurement procedures, independent audits and detailed reporting on the delivery, distribution and destruction of unfit notes. "The Legislature plays a critical oversight role by authorizing the total amount of banknotes and monitoring the Central Bank's compliance," Saamoi said.
The plan drew the sharpest pushback from Montserrado County Sen. Abraham Darius Dillon, who told the CBL it had failed to provide lawmakers with the cost and quality specifics needed to make an informed decision.
"If I don't know how much we're printing, what quality... I will be authorizing you to print a pig in a bag," Dillon said. He presented senators with three quality tiers the CBL had outlined -- substandard, mid-range and high -- and said there was only one acceptable choice. "I want to go for the high because cheap is expensive," he said.
Dillon also questioned the timeline. He recalled that the government spent nearly $25 million in 2021 to print over L$48 billion and pressed the CBL to explain why additional printing was necessary within such a short window. "Maybe it's the issue of quality," he said. "If you want me to authorize you and you have not told me the cost and quality, what am I doing?"
Saamoi responded that fluctuating market variables, including shipping, insurance, and production factors, make it difficult to commit to fixed costs ahead of procurement. "In hybrid, the amount is estimated at US$11.56 million," he said, presenting physical samples of the proposed banknotes to the committee.
Grand Cape Mount County Sen. Dabah Varpilah offered a more measured response, praising current economic conditions as stronger than five years ago but raising her own concerns about sufficiency. She questioned whether L$79 billion would be adequate to meet demand over the full five-year period and urged the CBL to stress-test its projections before seeking final approval, cautioning against returning to the Legislature for supplemental requests after authorization is granted.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
Gbarpolu County Sen. Amara M. Konneh described the gold purchase program as "an attractive proposal" while urging careful and deliberate implementation to avoid unintended economic consequences. Several other senators welcomed the proposal in principle but conditioned their support on greater transparency, prudent utilization to guard against inflation and robust governance mechanisms to track currency flow from printing through distribution to destruction.
The governor assured lawmakers that the CBL would adopt a transparent public communication strategy throughout the process. He pledged to keep citizens informed before, during and after implementation, and said the bank would not allow speculation to undermine public confidence in the currency infusion plan.
