The central bank of Rwanda responded to a liquidity crisis in 2008/09 by using quantitative indicators, but they were not effective in predicting the crisis. To improve, they suggest adding dynamic stress tests to assess liquidity risk better. By lengthening the maturities of assets and liabilities on the balance sheet, rather than just holding more liquid assets, compliance can be achieved. The paper recommends reforms to enhance systemic liquidity risk assessment, monetary policy implementation, and the efficiency of Rwanda's financial system.