The Central Bank of Liberia (CBL) has maintained its monetary policy rate at 16 percent while raising the reserve requirement on United States dollar deposits from 10 percent to 12 percent, as policymakers move to consolidate gains in inflation, exchange-rate stability and financial-sector resilience.
The decision was announced Tuesday, October 6, 2026, by CBL Executive Governor and Chairman of the Monetary Policy Committee (MPC), Henry F. Saamoi, following the Committee's review of global and domestic economic developments during the third quarter of 2026.
The MPC also maintained the reserve requirement for Liberian-dollar deposits at 25 percent and adjusted the interest-rate corridor to strengthen monetary policy transmission and liquidity management. The standing deposit facility was adjusted from 6.5 to 6 percentage points below the policy rate, while the standing credit facility was reduced from 1 to 0.5 percentage point above it.
Saamoi said the 16 percent policy rate remains appropriate amid moderating inflation, improved foreign-exchange conditions, adequate reserves and a resilient banking sector.
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"The Committee resolved to maintain the monetary policy rate at 16 percent, thereby preserving the current prudent and appropriately restrictive monetary policy stance," Saamoi said while reading the Committee's No. 28 communiqué.
The CBL said real gross domestic product (GDP) growth is projected at 5.5 percent in 2026, compared with 5.1 percent in 2025, reflecting improved performance in mining, manufacturing and services.
Headline inflation moderated to an estimated 4.5 percent during the third quarter, down from 5.4 percent in the previous quarter, and is expected to remain around 4.6 percent during the fourth quarter.
The banking sector also remained stable, adequately capitalized and highly liquid. The capital adequacy ratio stood at 38.64 percent, significantly above the regulatory minimum of 10 percent, while the liquidity ratio reached 58.71 percent, well above the statutory minimum of 15 percent.
However, the CBL expressed concern over non-performing loans, which stood at 13.38 percent, above the prudential benchmark of 10 percent. The Bank warned that elevated non-performing loans remain a medium-term risk to financial stability and constrain lending to productive sectors.
The MPC reaffirmed support for the National Strategy for Non-Performing Loans Resolution, saying it is critical to improving credit discipline, expanding finance, strengthening production and creating jobs.
Gross international reserves remained adequate at 3.3 months of prospective import cover, above the ECOWAS benchmark of three months. The CBL said strong reserves, remittances and improved exchange-rate conditions continue to mitigate imported inflation and provide a buffer against shocks.
The Committee said economic activity strengthened during the quarter, while fiscal operations remained supportive of growth. Public debt was reported at 43.3 percent of GDP, compared with 49.6 percent previously. The MPC emphasized fiscal discipline and stronger coordination between fiscal and monetary authorities.
Meanwhile, Acting Minister of Commerce and Industry Stephen Marka Yekeson welcomed the strengthening of the Liberian dollar but cautioned that appreciation must translate into tangible benefits for consumers.
Yekeson attributed the currency's strength to rising iron ore and gold exports, remittances, stronger reserves, economic growth and prudent monetary policy.
"Our shared task is to make this appreciation durable, rooted in production and trade rather than scarcity," Yekeson said.
He announced that the Ministry would intensify monitoring and publication of prices for essential commodities, strengthen market inspections and consumer-protection operations, and review import-related fees and avoidable supply-chain costs with the Ministry of Finance and Development Planning and the Liberia Revenue Authority.
The Ministry will also require supermarkets, wholesalers and retailers to display daily CBL exchange rates to prevent arbitrary pricing. Yekeson said the Ministry plans to digitize the import-permit system and integrate it with the LRA system to improve visibility over inventory and prices.
"A strong currency is meaningful only when prices reflect it," he said, stressing that savings from lower exchange rates should be passed fairly to consumers.
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Yekeson warned that a stronger Liberian dollar could reduce returns for farmers and make Liberian goods less competitive regionally. He said the Ministry would monitor farm-gate prices, promote value addition and strengthen Liberia's competitiveness under the African Continental Free Trade Area.
He praised the CBL's national payment switch and Inclusive Instant Payment System, saying digital payments can reduce pressure on banknotes and transaction costs.
The MPC identified geopolitical tensions, higher energy prices, commodity volatility, persistent inflation, tighter financial conditions, elevated non-performing loans, financial dollarization and potential fiscal slippages as risks.
The CBL said future decisions will be guided by incoming data, domestic and global conditions and its statutory mandate.
The next MPC meeting is in January.
"The Central Bank safeguards the value of our currency. The Ministry will ensure that that value reaches our marketplace," Yekeson said. "When the Liberian dollar becomes stronger, Liberians should feel stronger in their purchasing power."
