NATIONAL NEWS
MONROVIA – The Central Bank of Liberia (CBL) has provided what it describes as sufficient justification for its recent decision to request the printing of additional Liberian banknotes to be infused into the economy.
The CBL’s Deputy Director for Research, Policy and Planning, P. Mah Kruah, told a media briefing on Wednesday, April 8, 2026, that due to the rapidly deteriorating condition of the current sets of banknotes, especially the twenty and fifty-dollar notes, Liberia could run out of usable currency within the next one to two years if no action is taken.
By: Trokon S. Wrepue – trokon1992seokin@gmail.com
While the bank has offered detailed economic and technical justifications for its request, the move must receive legislative approval under Liberian law before any printing can take place.
Amid the ongoing discussions, President Joseph N. Boakai has requested a special session of the Legislature, currently on recess, with the printing of banknotes and a supplementary budget at the core of the agenda.
Deputy Director Kruah noted that Liberia remains a predominantly cash-based society, and banknotes experience rapid physical deterioration due to frequent handling and environmental conditions.
“Liberia remains predominantly cash-based, and banknotes experience rapid physical deterioration due to frequent handling and environmental conditions. For example, in Liberia’s humid conditions, if I put money in my pocket, it may get wet, and if you are not careful, the money becomes mutilated. And once it is mutilated, there is little you can do about it,” Mr. Kruah said.
“In other economies, the replacement of mutilated banknotes is solely the responsibility of the central bank, because the laws establishing those banks give them that authority. In our case, it is a bit different because the Legislature must first give approval before the central bank can print,” he added.
Mr. Kruah further noted that population growth and an expanding economy have increased demand for transactional cash, emphasizing that periodic replenishment of banknotes is a normal function of currency management.
Why Print Additional Banknotes?
The Central Bank of Liberia said public reliance on cash remains high despite advancements in digital systems. According to bank authorities, increased demand for Liberian dollars, driven by economic expansion and de-dollarization efforts—necessitates additional printing.
“Maintaining adequate vault levels for operational flexibility also requires sufficient currency. Additionally, supporting the gold purchase program and foreign reserve accumulation are necessary,” Mr. Kruah said.
“In Ghana, for example, gold forms part of reserve money alongside international reserves. To acquire gold, you must purchase and monetize it before it becomes part of the reserve. Therefore, there is a need for additional money to buy gold if you intend to use it as part of your international reserves. That is why it is necessary for us to print,” he explained.
Infusion Strategy for Economic Stability
The Central Bank of Liberia assured that the printing of new banknotes will not lead to inflation, which could erode purchasing power and undermine the economy.
“To ensure that the new currency supports economic stability, the CBL will align any increase in currency with economic fundamentals. These include growth, when the economy grows, currency supply must also grow—and demand for transactions.
As transactions increase, there must be sufficient currency to support them,” Mr. Kruah said.
The bank added that it will prevent excess liquidity—which could drive inflation upward—through open market operations, including the buying and selling of securities.
“You have heard about central bank bills. These are securities the central bank sells when there is excess liquidity in the system. When people purchase them, the funds received are sterilized—kept out of circulation. This reduces excess liquidity and strengthens the purchasing power of the currency,” he explained.
Ensuring Economic Stability
According to the CBL, the volume of new money to be printed will be determined by actual demand within the Liberian economy.
The Deputy Director explained that the additional banknotes will also be influenced by the bank’s gold purchase program.
“The CBL plans to use gold as an additional foreign exchange reserve. This requires purchasing and monetizing gold so it becomes part of international reserves. The quantity of gold to be purchased is factored into the printing decision,” Mr. Kruah said.
The bank added that it will continue its routine monitoring operations, including issuing central bank bills and strengthening Liberian dollar reserves. The amount of new banknotes printed will be based on several key economic factors.
Transparency, Accountability, and IMF Program
Following reports about the planned printing of additional banknotes, concerns have been raised on both social and traditional media regarding transparency and accountability.
However, the CBL assured the public that, as a member of an International Monetary Fund (IMF) program, the process will follow all legal procedures to maintain public confidence and trust.
“There will be strong safeguards to ensure transparency throughout the currency printing process. This includes legislative authorization, documented procurement procedures, internal and external audits, and engagement between the central bank and the IMF,” Mr. Kruah said.
“Remember, we are under an IMF program, and there are specific criteria we must meet. These include prudent spending, and any decision to print money must have the consent of our partners,” he added.
