MONROVIA – The Central Bank of Liberia (CBL) has intensified efforts to enforce the circulation of Liberian coins, warning that refusal to accept them as legal tender constitutes a violation of the law.
The issue dominated discussions during the Monetary Policy Committee (MPC) engagement, where stakeholders raised concerns about poor circulation and public resistance to coins.
Coins Must Circulate—Not Return to Banks
Central Bank of Liberia Executive Governor Henry F. Saamoi stressed that coins are meant to remain in the economy and facilitate everyday transactions—not return to banks.
“The coins are supposed to stay in the economy… to ease the change burden on Liberian citizens,” he said.
He made it clear that the Central Bank will not accept coins for redeposit, reinforcing the need for circulation at the market level.
1% Withdrawal Policy and Public Resistance
Under current policy, commercial banks are required to issue 1 percent of withdrawals in coins, but compliance challenges persist.
Bankers acknowledged that public perception remains a major barrier.
“People’s psyche has shifted away from coins as actual currency of transaction,” one banking executive noted.
Legal Enforcement and Public Awareness
The CBL is now moving toward enforcement, including collaboration with law enforcement agencies.
“The rejection of coins is a violation of the Constitution… and you can be penalized for that,” Saamoi warned.
Authorities say citizens can report businesses that refuse coins to the police or the Central Bank.
Operational Challenges for Banks
Commercial banks also cited logistical issues, including the difficulty of counting large volumes of coins and managing deposits.
However, the introduction of coin-sorting machines is expected to ease the burden.
Massive Awareness Campaign Planned
The Central Bank announced plans for a nationwide campaign to educate the public on the legal status and value of coins.
“We will embark on a massive campaign… to ensure that coins are accepted for all transactions,” Saamoi said.
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