MONROVIA – The Central Bank of Liberia (CBL) has reassured the public and all market participants that there is no shortage of Liberian dollars (LRD) in the financial system.
According to the Bank, commercial banks maintain sufficient liquidity to meet all customer demands, including government salaries, private sector transactions, and settlements.
Addressing recent concerns about a supposed “Liberian dollar shortage,” the CBL emphasized that these claims do not reflect the true financial situation. As of September 3, 2025, commercial banks held L$1.65 billion in vault cash, while the Bank’s reserves remain strong.
Excess reserves at commercial banks have nearly doubled compared to September 2024, reaching L$2.02 billion, highlighting robust liquidity across the system.
The Central Bank attributed rumors of scarcity to speculation, hoarding, and misinterpretation, stressing that these do not represent Liberia’s actual financial conditions, which remain stable and resilient.
Alongside stable liquidity, the Liberian dollar has sharply appreciated against the U.S. dollar. On September 8, 2025, the exchange rate was L$180.00 to US$1.00 (buying), compared to L$201.08 at the end of August—a 10.5 percent increase in just one week.
A CBL market survey on September 9 recorded rates of L$182.94 (buying) and L$184.94 (selling).
The appreciation is attributed to a combination of economic policies and structural reforms. The CBL has maintained a tight monetary stance since April 2025, holding the Monetary Policy Rate at 17.25 percent and sterilizing over L$13 billion to stabilize the foreign exchange market.
Strong remittance inflows totaling US$425.9 million in the first half of 2025, coupled with expanded economic activity outside Monrovia due to improved road infrastructure, have further reinforced the currency.
Inflation has also declined from 13.1 percent in February 2025 to 7.4 percent in July, with further reductions projected.
Structural improvements, including better road connectivity, expanded domestic energy, and increased agricultural productivity, are easing inflationary pressures. Reduced fiscal deficits and the use of the Pan-African Payment and Settlement System (PAPSS) for cross-border trade are also boosting confidence in the Liberian dollar.
CBL Executive Governor Henry F. Saamoi reaffirmed the Bank’s commitment to financial stability, stating:
“There is no shortage of Liberian dollars in the financial system. The recent appreciation of the currency reflects sound policy measures, structural improvements, and improving economic fundamentals. The Central Bank remains vigilant in safeguarding exchange rate stability, ensuring liquidity, and building confidence in the economy.”
The Bank urged the public to remain calm, avoid panic-driven transactions, and resist acting on unverified rumors that could create unnecessary market pressure.
The CBL reaffirmed its pledge to maintain macroeconomic stability, adequate liquidity, and public confidence in the Liberian dollar.
Trokon S. Wrepue is a Liberian journalist with 9 years of experience in the practice of journalism. Over the years, Trokon has reported on women and children issues, investigated public and private sectors corruption, environmental challenges and other critical human interest stories. He is currently the Editor of News for OK FM, one of Liberia’s premier media institutions in Monrovia. Besides being a journalist, Trokon is also a Mandela Washington Fellow. In 2022, he travelled to California in the US where he studied leadership, culture and diversities at the California State University. In 2023, he travelled to Johannesburg in South Africa and attended the Mandela Washington Fellowship Symposium of Young African Leaders.
