Senator Amara Konneh, Chairman of the Senate Committee on Public Accounts and Audit, has cautioned against potential economic risks in the Central Bank of Liberia’s (CBL) plan to print L$79 billion between 2026 and 2030, including the introduction of a new L$2,000 banknote.
Speaking at a public hearing organized by the Senate Joint Committee on Banking and Currency, Ways, Means, Finance and Budget, and Public Accounts and Audit, Konneh argued that the proposal exceeds Liberia’s current currency needs by approximately US$19 billion. He warned that excessive monetary expansion could fuel inflation, weaken the exchange rate, and erode citizens’ purchasing power.
Konneh described inflation as a “silent tax” that disproportionately affects wage earners, market women, and small businesses. He stressed that while insufficient liquidity could disrupt payment systems and stifle growth, overprinting currency risks destabilizing the economy.
The senator emphasized that lawmakers must strike a balance between meeting the Central Bank’s operational needs and protecting households from rising living costs. He estimated that Liberia’s justified currency requirement stands at L$60 billion, covering replacement of worn notes, net injections, and reserve cushions.
Konneh also highlighted the importance of aligning monetary expansion with broader economic realities, including structural weaknesses in agriculture, energy, and infrastructure.
He urged caution in approving the CBL’s request, noting that every additional dollar printed influences inflation expectations, exchange rates, and public confidence in monetary policy.
On the CBL’s gold purchase program, Konneh acknowledged its potential to strengthen reserves but insisted that liquidity requirements must be clearly justified. He called for transparent modeling of inflation and exchange rate impacts, a phased approach to reduce risks, and strong safeguards to protect citizens.
“The Senate remains committed to a responsible, data-driven outcome that enhances the Central Bank’s capacity while safeguarding the economic well-being of Liberians,” Konneh said, adding that more time may be needed before approval.
