At a press conference this Monday, September 1st in Conakry, Guinean government spokesman Ousmane Gaoual Diallo addressed the liquidity crisis that has been rocking the country for several months. With the economy slowing down and citizens struggling to access their money, the minister was keen to put the seriousness of the situation into perspective, which he considers more psychological than economic.

A crisis of confidence, not a system failure

According to Ousmane Gaoual, the current crisis is not linked to a structural lack of currency in circulation, but to a lack of confidence in the banking system. "This situation is not an economic crisis, but a form of anxiety," he said. "We have more money kept in wallets, safes, or homes than in banks. When everyone keeps their money at home, it doesn't circulate... That's what we call a liquidity crisis."

The government spokesperson thus pointed to citizens' hoarding behavior, fueled by distrust of financial institutions. According to him, there are three main reasons for this attitude: a lack of confidence in the banks' ability to return deposits, bank fees deemed excessive, and tax pressures perceived as a deterrent.

A plea for electronic payments

Faced with this situation, the minister recommends a transition to electronic payments, which he considers an essential lever for streamlining economic exchanges.

"What we want is to encourage dematerialized payments, as modern economies have done. (…) The government's objective is to increase payments other than through fiat currency. This will protect us from liquidity crises," he said.

While acknowledging that everyday uses, particularly in markets, remain heavily anchored in cash, he believes that the development of digital solutions such as Orange Money or other platforms can help reduce dependence on banknotes.

No question of flooding the market

The minister also clarified the government's position on a possible increase in the number of banknotes in circulation: there is no question of flooding the market with new banknotes, which, according to him, would only aggravate the problem.

"If you import new banknotes, people can always withdraw them and store them at home. The crisis will continue. Banknotes should only be introduced to replace worn-out ones."

Finally, he warned against the temptation to resort to printing money to finance public spending, recalling the disastrous economic consequences that this can cause: inflation, depreciation of the currency, and loss of purchasing power.

In summary, Ousmane Gaoual Diallo urges Guineans to restore confidence in the banking system and gradually adopt electronic payment tools. This is both a reassuring and strategic statement, in an economic context where trust seems to be the rarest currency.