By Festus Poquie
President Joseph Boakai has asked lawmakers to reconvene for a special session to authorize printing new Liberian dollar banknotes and to revive a roughly $1.2 billion spending package as the country grapples with economic fallout from the US Israel Iran conflict.
In a letter made public Tuesday, Boakai invoked his constitutional authority under Article 32(b) to call the 55th Legislature back to Capitol Hill from April 9-23 to consider a supplementary 2026 budget and a proposal to issue additional Liberian dollars.
The president did not disclose the precise quantity of notes he is seeking authorization to print.
Lawmakers signaled agreement in principle to the printing proposal and to reviving the $1.2 billion plan, according to officials familiar with the discussions.
They also pushed for targeted fuel and food subsidies to blunt price shocks and protect poor households from rising global energy and food costs tied to the regional conflict.
“The matters demand urgent legislative action and cannot wait until the next regular sitting,” the president said in the letter, which was circulated to legislators and the public.
The Central Bank of Liberia (CBL) has publicly dismissed claims of a currency shortage, saying in early 2026 that vault cash balances remain high and that the Liberian dollar is showing signs of appreciation. Street complaints about limited cash have persisted, however, and public reports indicate sizable losses from damaged or mutilated notes.
Between 2021 and 2024, Liberia introduced a new family of banknotes after the legislature in May 2021 authorized the issuance of more than L$48.7 billion, with deliveries phased through 2024.
Authorities said the pre 2021 series lost legal tender status on March 31, 2024. Government statements and some public accounts say damaged currency amounted to as much as L$1 billion by 2025.
The CBL has highlighted a smaller but still significant toll from mutilation — including campaigns last year to stem poor handling that had ruined about L$1 billion of the new notes.
In January 2022 the central bank publicly destroyed L$669 million ($3.6 million) in damaged banknotes. The CBL launched a “Clean Note” campaign in late 2025 to discourage practices such as writing, stamping, stapling and exposing notes to moisture and dirt — behaviors officials say raise replacement costs and weaken public confidence.
Economists and lawmakers say the twin measures — printing new notes and activating a large stabilization package — are intended to shore up liquidity and provide immediate fiscal space to subsidize energy and staple foods as international price shocks filter into domestic markets.
But printing additional currency poses risks. Monetary financing of fiscal needs can stoke inflation and undermine confidence in the currency unless accompanied by clear safeguards, financing plans and Central Bank coordination.
The CBL has emphasized that it currently does not see a shortage of Liberian dollars, a position that could complicate any argument for urgent large-scale printing.
Lawmakers will also weigh the 2026 supplementary budget during the two-week special session. Details on how the $1.2 billion figure would refine — whether through external borrowing, an off-budget facility, or central bank operations — were not disclosed.
