The Executive Governor of the Central Bank of Liberia (CBL) and Chairman of the Monetary Policy Committee (MPC), Henry F. Saamoi, on Thursday, April 30, 2026, formally presented the Committee's April 2026 monetary policy decisions, reaffirming the Bank's commitment to safeguarding price stability, maintaining exchange rate resilience, and supporting sustained economic growth at a time of heightened global uncertainty and evolving domestic pressures.
Speaking at the CBL headquarters in Monrovia, Henry F. Saamoi described the quarterly MPC meeting as a central pillar of the Bank's transparency and policy communication framework.
He emphasized that the Committee's deliberations were anchored in its statutory mandate to preserve price stability, ensure financial system resilience, protect the integrity of the exchange rate, and support broad-based economic growth.
According to Saamoi, the policy stance adopted for the second quarter of 2026 reflects a "careful assessment of global, regional and domestic developments and risks," particularly those linked to inflationary pressures, commodity price volatility, and tightening global financial conditions.
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Saamoi painted a cautious picture of the global economic environment, noting that growth prospects have weakened further in 2026.
He referenced the International Monetary Fund's (IMF) downward revision of global growth from 3.3 percent to 3.1 percent, attributing the slowdown largely to an oil price shock triggered by ongoing geopolitical tensions in the Middle East.
He explained that these tensions have disrupted global supply chains, increased volatility in crude oil markets, and intensified inflationary pressures across both advanced and emerging economies.
The spillover effects, he warned, are increasingly being felt in import-dependent economies such as Liberia, where fuel and food imports remain significant drivers of domestic price movements.
Saamoi further reported that global headline inflation is projected to rise to approximately 4.4 percent, driven primarily by persistent increases in energy and food prices. Core inflation, which excludes volatile items such as food and energy, also remains elevated across major economies, signaling that underlying price pressures are not yet fully contained.
He also highlighted tightening global financial conditions, pointing to rising sovereign bond yields, widening credit spreads, and increased volatility in international financial markets.
These conditions, he noted, have reinforced global investor preference for safe-haven currencies, particularly the United States dollar, thereby contributing to exchange rate pressures in smaller and open economies.
Despite these challenges, Saamoi observed that monetary policy responses remain divergent across jurisdictions.
While several central banks continue to maintain restrictive policy stances to curb inflation, others have begun cautiously easing interest rates in response to slowing growth.
This divergence, he said, adds complexity to global financial stability and complicates policy transmission in developing economies.
Turning to Liberia's domestic economic performance, Saamoi reported that the economy remained resilient in the first quarter of 2026, with real GDP growth projected at 5.1 percent.
He attributed this performance to strong activity in mining and quarrying, agriculture, manufacturing, and the services sector.
Mining, particularly gold and iron ore production, continues to play a central role in export earnings, while agriculture remains a key driver of employment and rural livelihoods.
The manufacturing and services sectors, though still developing, have shown steady expansion supported by gradual improvements in infrastructure and private sector activity.
However, Saamoi cautioned that sustaining this growth trajectory will require continued fiscal discipline, improved domestic revenue mobilization, and stronger coordination between monetary and fiscal authorities.
He stressed that structural vulnerabilities, including infrastructure deficits and limited industrial diversification, remain key constraints to long-term economic resilience.
On inflation, Saamoi reported a moderation in price levels during the first quarter of 2026, with inflation declining to 3.6 percent from 4.4 percent in the previous quarter.
He noted that this figure remains within the Central Bank's single-digit inflation target range, signaling relative stability in domestic price conditions.
However, he warned that emerging risks could reverse this positive trend.
Toward the end of the quarter, imported inflationary pressures began to surface, particularly in fuel and transportation costs.
Given Liberia's heavy reliance on imports for petroleum products and essential commodities, such pressures are quickly transmitted into domestic prices.
The MPC projects inflation to rise to approximately 5.3 percent in the second quarter of 2026.
Saamoi explained that this outlook is driven by anticipated exchange rate pass-through effects, rising global commodity prices, and persistent supply-side constraints.
Despite these risks, he noted that inflation expectations remain broadly anchored, reflecting confidence in the Central Bank's policy framework.
Nonetheless, he emphasized the need for continued vigilance and proactive policy intervention to prevent inflation from drifting outside the target band.
Saamoi also provided an assessment of Liberia's financial sector, noting that the banking system remains fundamentally stable, well-capitalized, and sufficiently liquid.
According to the MPC report, capital levels increased by 10.6 percent, reaching the equivalent of US$53.4 billion, while liquidity ratios stood at 53.2 percent, significantly above the regulatory minimum requirements.
Despite these positive indicators, the Governor raised concern over the level of non-performing loans (NPLs) within the banking sector.
He disclosed that NPLs stood at US$13.5 billion in the first quarter of 2026, exceeding regulatory thresholds and posing a potential risk to financial stability.
He noted that the concentration of dollar-denominated loans within the NPL portfolio adds further vulnerability, particularly in the context of exchange rate fluctuations.
This situation, he warned, could constrain credit expansion and weaken bank balance sheets if not carefully managed.
Broad money supply remained stable during the period under review, while credit growth increased modestly by 1.6 percent, reaching US$104 billion equivalent.
However, Saamoi observed that credit distribution remains uneven, with lending largely concentrated in trade, services, and personal consumption.
He expressed concern about the limited flow of credit to productive sectors such as agriculture and construction, which are essential for long-term economic transformation.
In his review of the external sector, Saamoi reported improved export performance driven primarily by gold, iron ore, and timber.
These gains, he said, have helped offset rising import bills and contributed to a narrowing of the trade imbalance.
He further noted that remittance inflows remain strong, continuing to play a critical role in supporting household consumption and foreign exchange availability.
These inflows, combined with improved export earnings, have helped stabilize external accounts.
Gross international reserves increased to approximately US$722.5 million, representing about 2.9 months of import cover.
While this marks an improvement, Saamoi cautioned that reserve levels remain vulnerable to external shocks, particularly fluctuations in commodity prices and capital flows.
The Liberian dollar appreciated modestly by 2.9 percent during the quarter, reflecting improved foreign exchange conditions.
However, Saamoi warned that external vulnerabilities persist, and exchange rate stability remains dependent on sustained inflows and prudent macroeconomic management.
Following its review of domestic and global conditions, the MPC announced several key policy decisions.
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The Committee voted to maintain the Monetary Policy Rate at 16.25 percent, while retaining a cautious tightening bias to guard against inflationary pressures.
The reserve requirement ratios were also maintained at 25 percent for Liberian dollar deposits and 10 percent for United States dollar deposits. Additionally, the interest rate corridor was kept at +2.5 and -7.5 percentage points around the policy rate.
Saamoi emphasized that the Central Bank of Liberia will continue to deploy liquidity management instruments, including Central Bank bills, to strengthen monetary policy transmission and ensure effective control of money supply conditions.
He reaffirmed the Bank's readiness to respond proactively should inflationary or financial stability risks intensify in the coming months.
Concluding his remarks, Saamoi underscored the importance of maintaining macroeconomic stability as a foundation for long-term development.
"Stability today is the foundation for growth tomorrow, and the Central Bank of Liberia will continue to act responsibly in the best interests of all Liberians," he stated.
Earlier in the session, Deputy Governor for Economic Policy Musa Dukuly welcomed participants and commended the leadership of Governor Saamoi and the MPC.
He described Saamoi's stewardship as "transformative, policy-driven, and result-oriented," noting that it has contributed significantly to strengthening macroeconomic stability and restoring confidence in the financial system.
Dr. Dukuly also acknowledged the technical teams of the MPC, commercial bank executives, representatives from the business community, academia, students, and members of the media.
He emphasized that the quarterly MPC briefing remains an important platform for transparency, accountability, and public engagement in monetary policymaking.
The Central Bank confirmed that the next Monetary Policy Committee meeting is scheduled for July 15, 2026, where further assessments will be made based on evolving domestic and global economic conditions.
