• Guinea injects funds into banks to ease cash shortages
• Shortages persist due to hoarding and weak cash circulation
• Central bank pushes digital payments and financial inclusion reforms

Guinea injected 908 billion Guinean francs ($103.4 million) into banks in the first quarter of 2026 to boost cash availability and ease persistent shortages, government spokesman Ousmane Gaoual Diallo said on Friday, March 27.

The amount is sharply higher than a year earlier. “In 2025, during the first three months of the year, 66 billion francs was made available to banks,” Diallo said. Total funds injected by the Central Bank of the Republic of Guinea (BCRG) over the 2025–2026 period are nearing 1,000 billion francs, according to authorities.

Despite these efforts, cash shortages persist. The government has urged those holding cash to put it back into circulation to facilitate transactions. Authorities said they are closely monitoring the situation in line with government directives, while stepping up coordination with banks to improve access to cash.

Cash shortages persist despite central bank measures

The government’s statements follow a series of actions by the central bank, including new banknote issuances to support cash supply. On Aug. 31, 2025, the BCRG announced the release of new banknotes after placing an order to meet demand. On March 1, 2026, Governor Karamo Kaba said the bank had intensified operations to address cash shortages.

The Professional Association of Guinea’s Banks (APB) said the issue is not a lack of liquidity in the banking system, but difficulties in cash circulation. Cash hoarding, uneven distribution and banknotes held outside the banking system are the main causes of the tensions, the association said.

A large share of banknotes does not return to banks, according to the central bank. Deputy Governor Mohamed Lamine Conté said about 94% of banknotes in circulation are held outside the banking system, mainly by households and in the informal economy, limiting banks’ ability to meet demand.

Delays in production and transportation have also contributed to shortages, along with reluctance by some actors to deposit funds due to compliance checks.

In response, the BCRG is working on a strategy focused on financial inclusion, expanding electronic payments and strengthening trust in the financial system to improve cash circulation and reduce reliance on cash transactions.

Chamberline Moko