Liberia's Central Bank Imposes Consistent 2% Fee on Mobile Money Withdrawals to Enhance Transparency
The Central Bank of Liberia (CBL) has announced a significant step towards modernizing the country's financial system with the implementation of the National Electronic Payment Switch (NEPS). This system, effective from August 1, 2025, will enable seamless, real-time transactions between Liberia's two mobile money operators [1][3][4].
One of the key aspects of this transition is the standardization of mobile money cash-out fees. As of August 1, 2025, a flat 2% fee will be applied to all mobile money withdrawals, regardless of the service provider [1][3][4]. For instance, withdrawing L$1,000 will now cost L$20.
This fee standardization is part of the CBL's broader strategy to modernize the country's financial system. The CBL aims to create a more competitive and transparent mobile money market by standardizing charges across all operators, eliminating inconsistent rates and protecting both consumers and agents [1][2].
The CBL also seeks to encourage a fully digital financial ecosystem by making non-cash transactions (such as bill payments and money transfers) low-cost or free, thus promoting more electronic payments. This move is expected to enhance financial inclusion, particularly in rural areas with limited traditional banking services [1][2].
The new policy is intended to reduce the reliance on physical cash and the associated costs of printing and distributing banknotes. It is also designed to improve transaction speed, transparency, and interoperability across different mobile network providers, enabling real-time money transfers across wallets [1][2].
The CBL's Executive Governor, Henry F. Saamoi, stated that this transition is central to fostering innovation, resilience, and inclusiveness in Liberia's payment landscape. The new policy may influence the behavior of both businesses and individuals in Liberia, as they may opt for digital transactions to avoid the cash-out fee [1][2].
The NEPS will also support efficient and transparent public payments, allowing the Government of Liberia to pay employees, contractors, and pensioners directly into their mobile money wallets [2]. This series of directives demonstrates the CBL's commitment to modernizing financial services and unlocking the full potential of digital platforms.
In conclusion, the CBL's implementation of a standardized mobile money cash-out fee is a key step towards modernizing Liberia's financial system. The policy is expected to have a significant impact on the way transactions are handled in Liberia, potentially encouraging the use of digital payments over physical cash. This move aligns with the CBL's ongoing efforts for a digital-first financial system transformation.
[1] Central Bank of Liberia Press Release, "CBL Introduces Standardized Mobile Money Cash-Out Fees," [Date], [URL] [2] Central Bank of Liberia, "Modernizing Liberia's Financial System: A Digital-First Approach," [Date], [URL] [3] Liberia Observer, "CBL Announces New Mobile Money Cash-Out Fee," [Date], [URL] [4] FrontPage Africa, "CBL to Introduce Standardized Mobile Money Cash-Out Fees," [Date], [URL]
- The implementation of the National Electronic Payment Switch (NEPS) in Liberia's financial system will not only enable seamless, real-time transactions between mobile money operators, but also standardize mobile money cash-out fees, aiming to create a more competitive and transparent market.
- As part of the Central Bank of Liberia's (CBL) commitment to modernizing the country's financial system, a flat 2% fee will be applied to all mobile money withdrawals from August 1, 2025, with the aim of fostering a digital-first financial system and encouraging financial inclusion, particularly in rural areas.
- To enhance transaction speed, transparency, and interoperability across different mobile network providers, the CBL's new policy includes making non-cash transactions low-cost or free, which may influence the behavior of both businesses and individuals in Liberia, encouraging them to opt for digital transactions to avoid the cash-out fee.
