Monrovia — The Central Bank of Liberia (CBL) has unveiled an ambitious currency expansion plan aimed at stabilizing the economy, proposing the printing of L$79 billion in new Liberian dollar banknotes and the introduction of a L$2,000 denomination note.
CBL Executive Governor Henry F. Saamoi said the move is intended to address severe cash shortages, replace mutilated banknotes, and meet rising transaction demands across the economy.
Speaking Tuesday, April 21, at a public hearing before the Senate Joint Committee on Banking and Currency, Ways, Means, Finance and Budget, and Public Accounts and Audit at the Capitol Building, Saamoi warned that Liberia's currency reserves have reached critically low levels.
"We are facing an acute shortage of Liberian dollar banknotes, and this poses a serious risk to banking stability," he told lawmakers.
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Phased Printing Plan
Under the proposal, the CBL plans to inject the additional currency into the economy between 2026 and 2030. Of the total amount, L$14.7 billion is expected to be printed in 2026, with the remaining L$64.3 billion to follow in subsequent years.
Saamoi emphasized that the proposed amount represents less than 40% of Liberia's total money supply, signaling a controlled expansion rather than an excessive injection of liquidity.
Addressing Cash Shortages and Mutilation
A key driver of the initiative is the high rate of currency deterioration. According to the CBL, Liberia experiences an estimated 7% annual mutilation rate, a figure that could increase as existing notes remain in circulation longer.
The introduction of the L$2,000 banknote is also expected to improve efficiency in large transactions and reduce the volume of physical cash required in circulation.
Supporting Economic Growth
The CBL linked the expansion to Liberia's economic growth trajectory, citing increased demand for cash transactions.
"The economy continues to grow. In 2025, we recorded a growth rate of 5.1%, and the 2026 national budget stands at US$1.2 billion. This growth requires sufficient currency to support transactions," Saamoi said.
He also noted that the U.S. dollar continues to dominate commercial transactions, underscoring the need to strengthen the Liberian dollar through increased availability.
Boosting Reserves and De-Dollarization
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Beyond addressing liquidity constraints, the CBL says the plan is part of a broader strategy to strengthen national reserves and promote de-dollarization.
Saamoi disclosed that the bank is exploring plans to diversify reserves, including the potential purchase of gold, though this will not commence in 2026 due to existing targets set by the International Monetary Fund (IMF).
"We need liquidity to build buffers, including reserves such as gold, to support long-term stability," he explained.
The initiative also aligns with the ECOWAS single currency agenda, expected to take effect by 2027. Saamoi stressed that Liberia must first deepen the use of its local currency before transitioning to a regional monetary system.
Safeguards and Transparency
The CBL clarified that no new currency will be introduced in 2029, ahead of presidential and legislative elections, to avoid political interference.
To ensure transparency, the bank plans to use single-source procurement for the initial L$14.7 billion printing, involving two foreign firms, while subsequent printings will follow a competitive international bidding process.
Urgency of Legislative Approval
Saamoi warned that delays in approving the printing plan could worsen the country's cash shortage.
"Liberia risks currency shortages if authorization for the printing of L$79 billion is not granted in time," he cautioned.
He added that it could take up to 24 months for the country to receive newly printed banknotes once orders are placed with foreign printers.
