CONAKRY, Guinea – A severe liquidity crisis is gripping Guinea, paralyzing commerce and leaving traders and ordinary citizens unable to access their own money. The acute cash shortage has sparked widespread frustration and economic anxiety, with long, snaking lines outside banks becoming a common sight across the country.

For weeks, businesses have been struggling to operate as many account holders report being unable to withdraw their savings. The situation has severely impacted market traders, who primarily deal in cash transactions.

“I came to the bank for the fourth day in a row. They tell me there is no cash,” said Aïssatou Diallo, a market vendor in the capital, Conakry. “My business is stagnant. I cannot buy new stock, and my customers cannot pay me if they can’t get money from the ATM. We are stuck.”

The government has acknowledged the crisis and is pursuing a drastic solution: importing tons of newly printed physical currency. Officials state that this emergency measure is necessary to inject much-needed liquidity into the economy and ease the mounting pressure on banks and citizens.

A Economy Running on Empty

The roots of the crisis are complex. Economists point to a combination of factors, including high inflation, a weakening Guinean franc, and a significant reliance on cash for daily transactions. Over 80% of transactions in Guinea are estimated to be conducted in cash, making the population particularly vulnerable when physical money becomes scarce.

The shortage has crippled supply chains. Traders are unable to pay suppliers, and consumers are forced to drastically reduce their spending. The informal sector, which employs a vast majority of the workforce, has been hit the hardest.

“Without cash, the entire engine of our local economy seizes up,” explained Mamadou Bah, a local economist. “Digital payment infrastructure is not yet widespread enough to serve as a viable alternative for most of the population. This creates a very dangerous situation.”

Government Response: A Flood of New Banknotes

In response, the government has announced it is airlifting massive shipments of newly printed currency into the country. The Central Bank has assured the public that this is a short-term solution to address the immediate liquidity crunch.

“We understand the concerns of our citizens and the business community,” a government spokesperson said. “We are taking all necessary measures to ensure a sufficient supply of banknotes is distributed to commercial banks across the nation to restore normalcy.”

However, this solution has raised concerns among some financial analysts. While it may provide immediate relief, simply printing more money carries the risk of fueling inflation further, potentially devaluing the currency and creating longer-term economic problems if not managed with extreme caution.

A Waiting Game

For now, the people of Guinea are playing a waiting game, hoping the promised shipments of cash will reach their banks soon. The crisis underscores the urgent need for financial innovation and stability in the region.

As one weary shopkeeper in Conakry put it, “The government says the money is coming. We hope it arrives before our businesses are completely finished.”