“The recent appreciation of the currency reflects sound policy measures, structural improvements, and improving economic fundamentals.”
Authorities at the Central Bank of Liberia (CBL) have assured the public that there is no shortage of Liberian dollars (LRD) in the financial system, despite recent public concerns and rumors.
In a statement released by the Ministry of Information, the CBL said that commercial banks across the country have sufficient Liberian dollar liquidity to meet customer needs, including salary payments, business transactions and other withdrawals.
“There is no shortage of Liberian dollars in the financial system,” said CBL Executive Governor Henry F. Saamoi.
“The recent appreciation of the currency reflects sound policy measures, structural improvements, and improving economic fundamentals.”
As of September 3, 2025, banks held L$1.65 billion in vault cash, while excess reserves nearly doubled to L$2.02 billion compared to the same period last year.
The CBL also highlighted that the Liberian dollar has sharply appreciated against the U.S. dollar.
On September 8, the buying rate stood at L$180.00 to US$1.00, compared to L$201.08 at the end of August marking a 10.5 percent appreciation in just one week.
A market survey on September 9, confirmed this trend, with the exchange rate at L$182.94 (buying) and L$184.94 (selling).
This strengthening of the currency, according to the Bank, is due to a combination of factors, including tight monetary policy, with the policy rate held at 17.25 percent; sterilization of over L$13 billion to stabilize the forex market, and also rising remittance inflows, totaling US$425.9 million in the first half of 2025; coupe with expanded economic activity beyond Monrovia due to improved road access.
The release furthered that inflation in the country has also fallen from 13.1 percent in February to 7.4 percent in July 2025, with further declines expected.
Structural improvements, including better roads, increased domestic energy, and higher agricultural productivity, are helping reduce living and business costs.
The Central Bank credited ongoing reforms such as reduced fiscal deficit and the adoption of the Pan-African Payment and Settlement System (PAPSS) for cross-border trade with reinforcing confidence in the LRD.
The CBL cautioned against spreading or acting on rumors of currency shortages, which it says are based on speculation, hoarding, and misinterpretation.
“Acting on unverified rumors or hoarding currency creates unnecessary market pressure and undermines stability,” the statement said.
The Bank reaffirmed its commitment to ensuring monetary and financial stability, maintaining liquidity, and keeping the public informed.