The Central Bank of Liberia (CBL) has reassured the public and market participants that there is no shortage of Liberian dollars (LRD) in the financial system, despite recent rumors of scarcity circulating in some quarters.
According to the Bank, commercial institutions remain liquid and fully capable of meeting demand for withdrawals, government salary payments, settlements, and private sector transactions.
“As of September 3, 2025, commercial banks held L$1.65 billion in vault cash balances, sufficient to serve customer needs, while the Central Bank itself maintains strong reserves to support the system, when necessary,” the Bank disclosed. It further noted that banks’ excess reserves nearly doubled to L$2.02 billion compared to the same period in 2024, underscoring a healthy liquidity position.
CBL emphasized that concerns about a shortage are “isolated” and stem mainly from speculation, hoarding, and misinterpretation of events, which do not reflect the reality of Liberia’s financial system.
The reassurance comes at a time when the Liberian dollar is recording sharp gains against the United States dollar. On September 8, 2025, the exchange rate stood at L$180.00 to US$1.00 (buying), compared to L$201.08 at the end of August—a week-on-week appreciation of 10.5 percent. A market survey conducted by the CBL on September 9 confirmed the upward trend, recording L$182.94 to US$1.00 (buying) and L$184.94 (selling).
The Bank attributed the appreciation to a combination of policy actions and structural improvements. Since April, the monetary authority has held the Monetary Policy Rate at 17.25 percent while sterilizing more than L$13 billion to stabilize the foreign exchange market. Liberia has also seen remittance inflows amounting to US$425.9 million in the first half of 2025, coupled with economic expansion outside Monrovia due to improved road connectivity.
Inflation has eased significantly, falling from 13.1 percent in February to 7.4 percent in July 2025, with further declines projected for August and September.
Beyond monetary policy, structural developments are also improving stability. Better road connectivity is lowering transportation costs, expanded domestic energy supply is reducing production expenses, and stronger agricultural productivity is boosting food availability.
Together with a reduced fiscal deficit and the adoption of the Pan-African Payment and Settlement System (PAPSS) for cross-border trade, these reforms are helping to reinforce confidence in the Liberian dollar.
Executive Governor Henry F. Saamoi reiterated the Bank’s commitment to protecting stability in both exchange rate and liquidity management.
“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,” Saamoi stated. “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 and avoid panic-driven transactions, stressing that acting on unverified rumors or hoarding currency only creates unnecessary market pressure.
The Central Bank reaffirmed its pledge to maintain adequate liquidity, sustain macroeconomic stability, and protect confidence in the Liberian dollar.
