MONROVIA — The Central Bank of Liberia (CBL) has officially begun enforcing a new monetary policy requiring all commercial banks to disburse at least one percent of every Liberian dollar withdrawal in coins, in a move aimed at strengthening currency circulation and improving everyday transactions.
The policy, which took effect Monday, April 13, was announced by CBL Executive Governor Henry F. Saamoi as part of broader efforts to address the long-standing issue of low coin usage across the country.
Under the directive, customers withdrawing cash in Liberian dollars will now receive a portion—equivalent to 1 percent of the total—in coins. For example, a withdrawal of L$5,000 will include L$50 in coins.
CBL officials say the initiative is designed to restore confidence in coins as legal tender and ensure they play their intended role in facilitating small-value transactions, particularly in markets, transportation, and petty trading.
“Coins are part of our currency and must be accepted for all transactions,” Governor Saamoi emphasized, warning that refusal to accept coins constitutes a violation of Liberia’s legal tender regulations.
The policy comes amid persistent challenges in the Liberian economy, where coins—despite being officially recognized alongside banknotes—are often rejected by businesses and individuals. This reluctance has contributed to an artificial scarcity of lower denominations and increased pressure on paper currency.
To support implementation, the CBL has also supplied commercial banks with additional coin-sorting machines to improve efficiency in handling and distributing coins. The move is expected to ease operational burdens on banks while ensuring smoother compliance with the new rule.
The initiative has been welcomed by the banking sector, with stakeholders noting that coins are more durable and cost-effective compared to frequently replaced paper notes.
Governor Saamoi has further called on public officials to lead by example by accepting coins during transactions, stressing that the success of the policy depends on nationwide compliance.
The CBL says the measure is part of a broader strategy to strengthen Liberia’s monetary system and enhance the efficiency of the national payment structure.
As the policy takes hold, attention will shift to public response and enforcement, particularly in ensuring that coins—long sidelined in everyday commerce—are fully reintegrated into Liberia’s economic life.
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