IPNEWS: The Central Bank of Liberia (CBL) has assured the public that recent fluctuations in the exchange rate are temporary and linked to seasonal factors. These changes according to the CBL are driven by increased demand for U.S. dollars as businesses restock goods sold during the festive season.
The current rate in the country is between 194 – 197 LRD to $1 at different locations.
The CBL emphasized that this trend is typical during the post-holiday period and does not indicate any structural weaknesses in the foreign exchange market. It further reassured the public that the depreciation of the Liberian dollar is expected to slow down soon.
In a press release, the CBL highlighted key economic indicators that as of November 2024: Liberian dollars in circulation accounted for less than 4% of the country’s nominal GDP, the Liberian dollar supply made up less than 15% of the total money supply while the Liberian dollars represented only about 10% of annual import payments.
Additionally, net U.S. dollar remittance inflows into the domestic economy were estimated at $661.8 million, nearly four times the volume of Liberian dollars in circulation. The CBL stated that this proportion of Liberian dollars is too low to cause long-term instability in the foreign exchange market.
The bank encouraged businesses and individuals not to panic over the current depreciation but instead to invest in CBL Bills, which offer an annual interest rate of 17%, one of the highest returns on Liberian dollar investments.
The CBL reaffirmed its commitment to collaborating with the government and stakeholders to maintain economic stability. It also pledged to monitor the situation closely and implement additional measures if needed.
The public is advised to avoid speculative behavior in the foreign exchange market and consider investing in CBL Bills for attractive returns while supporting the economy.
