The Central Bank of Liberia says it requested the printing of seventy-five billion Liberian Dollars (L$75 Billion) as part of measures to respond to the growing demands for local currency but the National Legislature approved only four billion Liberian Dollars (L$4Billion) in 2019.
In a statement issued late Monday, November 9, 2020, the bank says fifty percent (50%) of the approved and printed amount has been infused into the market through commercial banks.
“The Central Bank of Liberia has announced that it is taking measures in keeping with its statutory mandate to ensure that adequate Liberian Dollars are provided to the population through the commercial banks in the country,” the bank states.
According to the CBL is currently infusing liquidity in the Commercial Banks to address the shortage, but says it will be done gradually so as to maintain a low inflation volatility aimed at protecting the purchasing power of ordinary citizens.
The Central Bank of Liberia indicates that the current restrictive operational autonomy granted it under the CBL Act constrains the bank from taking measures to effectively address the increasing demands of Liberian Dollar Liquidity.
“We had requested the printing of 75-billion Liberian Dollars in 2019, but the
legislature only approved 4-billion at the time. This means with increasing
demands from several factors to include economic and population effects,
dollarization, mutilation and economic precautions the need now for the printing of more liquidity cannot be overemphasized” the bank asserts.