The House of Representatives has voted to authorize the Central Bank of Liberia (CBL) to print up to L$79 billion in new Liberian dollar banknotes, a move lawmakers say is aimed at replacing worn-out currency and improving the country’s cash supply.
The decision was made during the House’s 18th Day Sitting after members endorsed a report from the Committee on Banking, Currency and Insurance. The approval followed public hearings and consultations with the Executive Branch, the Central Bank of Liberia, the Ministry of Finance and Development Planning, technical experts, private sector representatives, and members of the public.
Presenting its findings, the Committee said it carefully reviewed the Central Bank’s revised request, current economic conditions, and the operational needs of the banking sector before recommending approval.
According to the Committee, the new banknotes are primarily intended to replace old and damaged Liberian dollar notes, improve the quality and security of the country’s currency, strengthen cash availability across Liberia, and support the smooth operation of the national payment system.
Rather than approving the request in phases, lawmakers authorized the full L$79 billion. However, the Committee said the Central Bank will decide when and how much currency to print and release based on economic conditions, replacement needs, public demand for cash, and monetary policy.
The Committee said the full authorization will eliminate the need for repeated legislative approvals, reduce procurement and production costs, provide certainty for the Central Bank and international currency printers, and allow the Bank to print only the amount needed at any given time.
Addressing public concerns, lawmakers stressed that approving the printing of new banknotes does not automatically increase the amount of money in circulation. The Committee explained that the Central Bank will control the production schedule, shipment, storage, and release of the notes in line with existing monetary policies and economic conditions.
To ensure accountability, the House attached several conditions to the approval. The authorization is strictly for printing and replacing Liberian dollar banknotes, while any release of new currency into circulation must comply with the Central Bank of Liberia Act and existing monetary policy. The Central Bank is also required to submit quarterly implementation reports to the Legislature, with the House Committee on Banking, Currency and Insurance continuing to monitor the process.
The Committee concluded that most of the new banknotes will replace damaged notes already in circulation rather than expand Liberia’s money supply. It also noted that newly printed banknotes may remain in secure vaults until they are needed to replace old currency.
Following debate on the House floor, lawmakers voted in favor of the measure, clearing the way for the Central Bank to proceed with the printing exercise under the approved conditions.
The instrument has now been forwarded to the Liberian Senate for concurrence as required under the country’s legislative process.
