The Central Bank of Liberia (CBL) reassures the public and all market participants that there is no shortage of Liberian dollars (LRD) in the financial system. Commercial Banks maintain sufficient Liberian dollar liquidity to meet customer demand, including government salaries, settlements, and private sector transactions.
Recent concerns about “Liberian dollar shortages” do not reflect the true liquidity situation. As of September 3, 2025, commercial banks held L$1.65 billion in vault cash balances, adequate to serve customer withdrawals and payments, while the CBL itself maintains strong reserves to support the system when necessary. Banks’ excess reserves have nearly doubled to L$2.02 billion compared to September 2024, underscoring strong liquidity.
The central Bank stresses that rumors of scarcity are isolated, arising from speculation, hoarding, and misinterpretation. These do not reflect Liberia’s actual Liberian dollar financial conditions, which remain stable and resilient.
Alongside this stability, the Liberian dollar has recorded a sharp appreciation against the United States dollar. On September 8, 2025, the exchange rate was about L$180.00 to US$1.00 (buying), compared to L$201.08 to US$1.00 at end-August 2025—an appreciation of 10.5 percent in just one week. A CBL market survey on September 9 confirmed the trend, recording L$182.94 to US$1.00 (buying) and L$184.94 to US$1.00 (selling).
This appreciation reflects both economic and structural factors. Since April 2025, the Central Bank has maintained a tight monetary policy stance, holding the Monetary Policy Rate at 17.25 percent and sterilizing more than L$13 billion to stabilize the foreign exchange market, strengthening remittance inflows of US$425.9 million in the first half of 2025 and expanding economic activity outside Monrovia induced by improved road connectivity. Inflation has also declined from 13.1 percent in February 2025 to 7.4 percent in July, with further declines projected for August and September.
At the same time, structural developments are easing inflationary pressures. Road connectivity is reducing transport costs, expanded domestic energy is lowering production expenses, and gains in agricultural productivity are improving food availability. Together with reduced fiscal deficit and the use of the Pan-African Payment and Settlement System (PAPSS) for cross-border trade, these reforms are reinforcing confidence in the Liberian dollar.
The Central Bank remains firmly committed to safeguarding monetary and financial stability. It will ensure the continued availability of Liberian dollars across the banking system, monitor the foreign exchange market to counter distortions, and provide timely public updates. Executive Governor Henry F. Saamoi emphasized: “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 urges the public to remain calm and avoid panic transactions. Acting on unverified rumors or hoarding currency creates unnecessary market pressure and undermines stability. The Central Bank reaffirms its commitment to sustaining macroeconomic stability, maintaining adequate liquidity, and strengthening confidence in the Liberian dollar.
