-As Pres. Boakai Reports Liberia’s Reserves at 7%
By Jerromie S. Walters
MONROVIA – The Plenary of the House of Representatives has forwarded to its Committee on Banking and Currency an instrument seeking legislative authorization for the printing of additional Liberian dollar banknotes for the period 2026 to 2030, following a communication from President Joseph Nyuma Boakai Sr. warning that reserve holdings have fallen to a critically inadequate 7.06 percent.
The House’s decision on Thursday, April 9, 2026, sets in motion a review process that could clear the way for the Central Bank of Liberia to print new currency for the first time since the conclusion of the LS3 exercise in 2024.
According to the President’s communication, the proposal is in line with Section 6(b) and (c) of the amended Act establishing the Central Bank of Liberia, which empowers the bank to issue and manage the Liberian dollar to promote monetary and financial stability. The primary objective, President Boakai stated, is to secure legislative approval for additional printing capacity—including emergency provisions—to maintain adequate liquidity and support national economic policies.
The communication further stressed that since 1999, the Central Bank has conducted three major currency replacement exercises, with the most recent between 2021 and 2024 involving the printing of L$48.734 billion to replace legacy currency valued at L$25.8 billion and to meet growing transactional demand.
However, President Boakai noted that several challenges have since necessitated additional printing, including rising volumes of mutilated banknotes, declining reserve holdings, increased reliance on cash transactions, and growing demand for Liberian dollars due to economic expansion. As of December 31, 2025, only 7.06 percent of banknotes remain in reserve, a level the President described as critically inadequate to sustain liquidity requirements for 2026 and beyond.
The President emphasized that the additional printing will help replace damaged notes, support transactions in both the public and private sectors, strengthen foreign exchange reserves, and advance Liberia’s de-dollarization efforts as well as its readiness for regional monetary integration within the Economic Community of West African States framework.
President Boakai assured lawmakers that the government remains committed to transparency and accountability in the execution of the exercise, noting that the Central Bank of Liberia will provide periodic reports to the Legislature on the progress and outcomes of the proposed banknote printing program.
Meanwhile, the Committee on Banking and Currency is expected to review the instrument and report within the statutory period of the ongoing special session.
