Liberia Mandates Coin Distribution in Cash Withdrawals to Boost Circulation
MONROVIA, Liberia — Starting this week, Liberians withdrawing cash from banks will receive coins as part of their transactions—whether they like it or not. The Central Bank of Liberia (CBL) has introduced a strict new policy requiring commercial banks to include coins in every Liberian dollar withdrawal, aiming to tackle the country’s chronic shortage of small change.
Under the directive, customers withdrawing cash over the counter will receive 1% of their total amount in coins. For example, someone taking out L$5,000 will get L$50 in coins alongside their paper currency. The move is designed to push coins back into everyday use, particularly for small purchases like market goods, bus fares, and street vendor transactions.
A Long-Standing Problem
For years, coins have been widely rejected by businesses and individuals across Liberia, despite being legal tender. Many complain that coins are inconvenient or difficult to spend, leading to an artificial scarcity of lower denominations. This has put extra strain on Liberia’s paper currency supply, making everyday transactions needlessly difficult.
CBL Executive Governor Henry F. Saamoi made it clear that refusing coins is not just frowned upon—it’s against the law. “Coins are part of our currency and must be accepted for all transactions,” he said. “Rejecting them is a violation of Liberian monetary regulations.”
Banks Get More Support
To ease the transition, the CBL has provided commercial banks with additional coin-sorting machines. Previously, each bank had only one machine, but they will now operate with three, allowing for faster and more efficient handling of coins.
Liberia Bankers Association President Lekan Balogun welcomed the initiative, emphasizing that coins are more durable and cost-effective than paper money. “Coins are legal tender and should be accepted just like banknotes,” he said. “They last longer and reduce the cost of constantly printing new bills.”
Government Officials Warned
Governor Saamoi issued a stern warning to public officials, urging them to comply without exception. “If you are a government official and you withdraw Liberian dollars, you must accept coins,” he said. “Do not call the central bank to complain. I will not intervene.”
The CBL has also hinted at penalties for businesses or individuals who continue to refuse coins, though specific enforcement measures have not yet been detailed. Public awareness campaigns are expected to roll out alongside the policy to encourage nationwide acceptance.
Why It Matters
The move is particularly significant for low-income earners and informal traders, who rely heavily on small denominations. Without coins, many struggle to make exact payments, often losing money in the process. By forcing coins back into circulation, the CBL hopes to stabilize the currency system and ease daily commerce for millions of Liberians.
As the policy takes effect, businesses and consumers alike will need to adjust—whether they’re ready or not.
— Reported by Nexio News
