National Business Outlook

The House of Representatives has approved a proposal from the Central Bank of Liberia (CBL) authorizing the printing of up to L$79 billion in new Liberian dollar banknotes between 2026 and 2030.

Lawmakers said their decision followed a series of consultations involving the Ministry of Finance and Development Planning, the Central Bank of Liberia, and other financial experts. The approval was based on a report submitted by the House Committee on Banking, Currency and Insurance.

According to the Committee, the proposal is intended to replace mutilated Liberian dollar banknotes, improve the quality and durability of the national currency, and strengthen the availability of cash throughout the country.

To avoid the need for repeated legislative approval, the Committee granted the CBL authority to print the entire L$79 billion.

However, the Bank will determine the timing, sequencing, production, and circulation of the banknotes based on prevailing macroeconomic conditions and in accordance with fiscal policy and existing financial regulations.

The Central Bank’s proposal states that the L$79 billion will be printed in two phases over the five-year period from 2026 to 2030.

The proposal also includes the introduction of a new L$2,000 banknote, which the CBL says is intended to address growing liquidity challenges resulting from the rapid expansion of currency circulation across the Liberian economy.

Despite the approval, the decision has sparked public debate. Some political commentators have questioned what they describe as the swift passage of the proposal after only two public hearings.

The commentators allege, without presenting evidence, that the planned currency printing could be used to finance the governing Unity Party’s 2029 election campaign, raising concerns about transparency, accountability, and the potential for economic mismanagement.

Meanwhile, financial experts have cautioned that while the House of Representatives has the constitutional authority to authorize the printing of currency, strict adherence to monetary policy, fiscal discipline, and sound financial management will be essential to prevent adverse economic consequences.

They warned that excessive or poorly managed money printing could fuel inflation, weaken public confidence in the Liberian dollar, and negatively affect businesses and the broader economy.

The experts further pointed to Zimbabwe’s experience with hyperinflation as a cautionary example, urging Liberian policymakers to exercise prudence, ensure transparency, and maintain strong institutional oversight throughout the implementation of the currency-printing program.