By Socrates Smythe Saywon | Smart News Liberia
MONROVIA – Gbarpolu County Senator Amara Konneh has called for caution and rigorous scrutiny as the Liberian Senate considers a major currency printing request from the Central Bank of Liberia (CBL), warning that any misstep could have far-reaching consequences for the country’s fragile economy.
Raising concerns following a joint Senate committee hearing held on Tuesday, April 21, 2026, Amara Konneh said the engagement with the Central Bank of Liberia (CBL) provided “important clarity” on the Bank’s proposal to print additional Liberian dollars. The hearing brought together committees on Banking and Currency, Ways and Means, Finance, and Public Accounts and Audits.
According to Konneh, the CBL Governor acknowledged that beyond routine currency replacement and normal liquidity injections, the Bank is seeking to print an additional L$10 billion to strengthen reserve buffers. He added that the request also includes funding to support liquidity needs for a gold purchase program aimed at boosting Liberia’s reserves.
“This level of transparency is crucial because it helps define the real policy question facing the Legislature,” Konneh stated, emphasizing the importance of understanding the full scope and implications of the request.
The former Finance Minister stressed that lawmakers now face a dual responsibility that is “both technical and moral,” requiring them to strike a careful balance between supporting the operational needs of the monetary authority and protecting ordinary Liberians from economic harm.
“We must balance the operational needs of the monetary authority with the economic realities facing Liberian households,” Konneh said. “If we underfund the Central Bank, we risk liquidity shortages and instability. If we authorize more currency than the economy needs, we risk fueling inflation and eroding purchasing power.”
Drawing on Liberia’s economic history, Konneh warned that excessive monetary expansion often acts as a “silent tax” on citizens, disproportionately affecting wage earners, market women, and small businesses whose incomes struggle to keep pace with rising prices.
At the same time, he cautioned that insufficient liquidity could constrain economic activity, disrupt payment systems, and weaken confidence in the financial sector. He noted that any decision must also align with the country’s broader goal of expanding digital financial services and gradually transitioning toward a less cash-dependent economy.
Based on the Senate’s internal analysis, Konneh revealed that the justified currency need, covering replacement of worn notes, normal injections, and a reasonable reserve buffer, is estimated at around L$60 billion. In contrast, the CBL’s request totals L$79 billion, leaving a gap of approximately L$19 billion.
“This gap does not automatically mean misjudgment or misconduct,” he clarified, “but it raises important questions that must be addressed before the Legislature can responsibly approve such a large monetary expansion.”
Konneh underscored that every additional dollar printed carries consequences, influencing inflation, exchange rates, and the cost of imported goods, while also shaping public confidence in the country’s monetary policy framework.
Placing the issue in a broader context, the senator noted that Liberia is still recovering from multiple economic shocks, including global commodity volatility and structural weaknesses in key sectors such as agriculture and infrastructure. In such an environment, he said, monetary policy must be “carefully calibrated.”
He also highlighted concerns surrounding the CBL’s proposed gold purchase program, noting that while it could strengthen reserves and boost confidence, the liquidity required must be clearly justified and supported by a robust risk management and accountability framework.
Looking ahead, Konneh said the Senate Joint Committee will demand detailed justifications, transparent economic modeling, and safeguards to protect citizens from unintended inflation. He emphasized that lawmakers may need additional time before granting approval.
“Our goal is simple,” Konneh concluded. “We want to support growth, maintain stability, and preserve the purchasing power of the Liberian people.”
