By Laurina B Lormia
President Joseph Boakai has called for the acceleration of Liberia’s de-dollarization efforts through increased transactions in local currency, emphasizing its role in stabilizing the economy and reducing exchange rate volatility.
This initiative aims to foster a financially literate population capable of making-informed financial decisions, thus contributing to the overall economic stability and growth of Liberia.
The launch which was held on Thursday March 27, 2025, at the Monrovia City Hall in Sinkor under the theme “Inclusive Economic Growth Through Financial Education and PAPSS,” brought together key government officials, financial experts and business communities.
Speaking at the official launch of the National Financial Education Program (Fin-Ed) and rollout of Pan-African Payment and Settlement System (PAPSS), President Boakai underscored the need for financial education to build trust and confidence in PAPSS.
According to him, PAPSS will accelerate the Government’s de-dollarization policy by facilitating transactions in local currency which, ultimately, will help stabilize the Liberian economy and reduce exchange rate volatility.
He added that, considering that the Liberian economy has a perennial foreign exchange problem, it will be a monumental achievement to have businesses conducting cross-border trade without having to first convert the Liberian dollar to the US dollar.
“This will help to save our country’s scarce foreign exchange and build our international reserves, thereby strengthening the external position of our country and the value of the Liberian dollar,” he noted.
The 2022 Findex Report (a World Bank published report) showed that the National Financial Inclusion Rate of Liberia was 52% compared to the 36% recorded in 2017.
Moreover, the gender financial inclusion gap for the same period was 15.4% (male: 59.34% and female: 44.2%). This is above that of sub-Saharan Africa of 12.32%.
“While these disparities may not be that discouraging, we believe that with concerted financial education programs, intervention and initiatives, we can significantly improve the situation by increasing these figures further,” he mentioned.
“As we push forward with this initiative, financial education will play a crucial role in ensuring that Liberians trust and confidently use PAPSS,” President Boakai stated.
He stressed that educating individuals and businesses about the security and efficiency of the system would be vital to encouraging widespread adoption.
President Boakai also commended the Central Bank of Liberia (CBL) for its ongoing efforts in promoting macroeconomic stability and aligning with the government’s ARREST Agenda for inclusive economic growth.
He encouraged all stakeholders to embrace the opportunities within the financial system, particularly the Financial Education Program and PAPSS, to drive financial inclusion and economic empowerment.
“Once people get financially included because of their knowledge and use of financial products, they are more likely to start and grow their businesses, invest in their future, and contribute to the economic growth of the country,” he stressed.
He however urged all stakeholders to take advantage of the opportunities presented by our financial system to contribute toward the acceleration of the ARREST Agenda for Inclusive Development.
Giving an overview, the Director of Corporate Communication and Chairman of the Government of Liberia’s Working Group on Financial Education, P. Alphonsus Zeon, emphasized the urgent need for financial literacy to support Liberia’s economic development.
Speaking on the Fin-ED initiative, Zeon said the program aims to drive financial sector reforms and guide government policy in key areas, including banking, insurance, enterprise development, access to finance, credit information, payment systems, digital finance, and financial inclusion.
He revealed that, a 2013 financial inclusion survey found that only 3% of respondents consistently had enough funds to meet their expenses. Additionally, a baseline study conducted in January this year showed that 77% of respondents had never received financial education.
“These findings highlight the critical need for financial literacy programs to equip individuals with the knowledge and skills necessary to manage their finances effectively,” Zeon stated.
“As part of efforts to address this gap, the Central Bank of Liberia (CBL) has taken the lead in promoting financial education across the country. The initiative is being implemented in collaboration with key government institutions, including the Ministry of Education, the Ministry of Gender and Social Protection, the Ministry of Youth and Sports, and various development partners,” he mentioned.
Zeon stressed that financial education is not only beneficial to individuals but also to financial institutions, employers, educators, government agencies, and non-governmental organizations. He noted that in many countries, financial literacy programs are aligned with national development policies, reinforcing economic stability and poverty reduction.
“When people are financially literate, they can better manage personal and family finances, prepare for emergencies, and make informed investment decisions that contribute to economic growth,” he added.
Experts believe that financial literacy also plays a crucial role in workplace productivity. Employees facing financial difficulties often experience stress, leading to absenteeism and decreased efficiency. By equipping individuals with better financial management skills, Liberia can reduce workplace stress and enhance overall economic development.
With strong backing from development partners and the leadership of the CBL, Liberia has a unique opportunity to implement a well-coordinated and strategic financial education initiative. If effectively executed, the program could significantly improve financial literacy nationwide, ensuring that citizens are better prepared for financial stability and long-term economic growth.
For her part, the Director of the Payment System Department at the Central Bank of Liberia (CBL), Miatta O. Kuteh, stated that Liberia is making significant strides in financial integration through the Pan-African Payment and Settlement System (PAPSS).
According to her, the system allows businesses and individuals to make cross-border payments without the need to convert Liberian dollars into U.S. dollars or Euros, reducing reliance on foreign banks as intermediaries. Payments are instead made directly in local currencies, ensuring smoother and more cost-effective transactions.
She added that, Liberia has been a strong supporter of PAPSS from its early development stages. The country established its own payment system committee in 2016 and has since worked closely with the PAPSS team and the African Union Bank to integrate the system into its national financial framework.
On Liberia’s progress, financial authorities confirmed that the country is on track to complete its full integration into PACS by August. Central Bank of Liberia (CBL) officials and National Settlement Agents have been working to clear pending obligations from past transactions, a crucial step in ensuring seamless operations.
Commercial banks in Liberia have also welcomed the initiative, with many already signing up for PAPSS-powered transactions. This move enables Liberian businesses and individuals to conduct cross-border transactions with ease, further expanding financial accessibility and trade opportunities.
“We have seen overwhelming support from the banking community, as they recognize the business opportunities this system brings, we are collaborating with mobile money operators and fintech companies to ensure that all sectors of the financial industry can benefit from this innovation,” she stressed.
Even before the official rollout, Liberia has been conducting pilot transactions to test the system. Last year, a landmark payment was successfully completed from Ghana to Liberia, demonstrating the efficiency and reliability of PAPSS.
“As Liberia moves closer to full implementation, stakeholders remain optimistic about the impact of PAPSS on financial inclusion and regional trade. The system is expected to streamline transactions, lower costs, and strengthen economic ties between Liberia and other African nations,” she concluded.
The rollout of PAPSS is expected to enhance cross-border transactions and reduce dependency on foreign currencies, further strengthening Liberia’s financial sector.
Boakai Calls For Accelerated De-dollarization, Financial Inclusion
