Monrovia, Liberia ~ The Central Bank of Liberia (CBL) has firmly reassured the public and financial sector that there is no shortage of Liberian dollars (LRD) in the national economy. The Bank emphasized that commercial banks across the country maintain sufficient liquidity to meet all obligations, including government payrolls, private sector transactions, and settlements.
In a statement issued Tuesday, the CBL dismissed recent concerns about a scarcity of Liberian dollars as “unfounded” and attributed them to speculation, hoarding, and misinformation.
“As of September 3, commercial banks held L$1.65 billion in vault cash, more than enough to meet customer withdrawals and payments,” the Bank reported. “Additionally, excess reserves in the banking system have nearly doubled to L$2.02 billion compared to the same period last year, highlighting the system’s robust liquidity.”
The central bank also noted that it maintains strong reserves and stands ready to intervene if needed to support market stability.
Liberian Dollar Appreciates Sharply
The announcement comes amid a notable appreciation of the Liberian dollar. On September 8, the exchange rate stood at approximately L$180.00 to US$1.00 (buying rate), compared to L$201.08 just a week earlier ~ representing a sharp 10.5% gain. A CBL market survey on September 9 confirmed this trend, recording buying and selling rates of L$182.94 and L$184.94 to US$1.00, respectively.
The Bank attributed the strengthening currency to a mix of economic and structural reforms. Since April 2025, the CBL has implemented a tight monetary policy, maintaining the Monetary Policy Rate at 17.25% and absorbing over L$13 billion from the market to stabilize exchange rates.
This policy framework, along with a surge in remittance inflows—totaling US$425.9 million in the first half of 2025—and increased economic activity outside Monrovia due to improved road connectivity, has boosted demand for the local currency.
Inflation Down, Confidence Up
In addition to currency gains, inflationary pressures have eased significantly. The inflation rate dropped from 13.1% in February to 7.4% in July, with further declines projected in the months ahead.
Structural improvements are also playing a key role. Reduced transport costs, expanded energy access, and rising agricultural productivity are all contributing to lower prices and increased food availability. At the same time, better fiscal management and the adoption of the Pan-African Payment and Settlement System (PAPSS) for cross-border trade are enhancing confidence in the economy.
Governor Saamoi: “No Shortage, No Panic Needed”
Executive Governor Henry F. Saamoi reiterated the CBL’s commitment to monetary and financial stability.
“There is no shortage of Liberian dollars in the financial system,” he said. “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.”
He also urged the public not to engage in panic transactions or hoard currency, warning that such behavior could create artificial pressure in the market and disrupt economic stability.
Continued Vigilance
Looking ahead, the Central Bank pledged to maintain adequate liquidity in the system, closely monitor the foreign exchange market, and provide timely public updates to prevent misinformation.
“The CBL remains firmly committed to supporting macroeconomic stability and strengthening trust in the Liberian dollar,” the statement concluded.
