10/09/2025
CBL Reassures Public: Liberian Dollar Supply Stable, Currency Strength Shows Effective Policy
The Central Bank of Liberia (CBL) has assured the public and financial stakeholders that there is no shortage of Liberian dollars (LRD) in the financial system.
According to the Bank, commercial banks currently have adequate LRD liquidity to meet all payment demands, including government salaries, private transactions, and settlements.
In a statement released Tuesday, September 9, 2025, the CBL addressed recent concerns over reported shortages of the Liberian dollar, calling them inaccurate and misleading.
The CBL noted that as of September 3, 2025, commercial banks held L$1.65 billion in vault cash, with the Central Bank maintaining robust reserves to support the system if needed. Additionally, banks’ excess reserves have nearly doubled to L$2.02 billion compared to the same period last year, signaling strong liquidity in the system.
The CBL clarified that rumors of cash scarcity stem from speculation, hoarding, and misinformation not from actual financial conditions. Liberia’s LRD liquidity remains stable and resilient.
Meanwhile, the Liberian dollar has seen a significant appreciation against the U.S. dollar. On September 8, 2025, the exchange rate stood at L$180.00 to US$1.00 (buying), up from L$201.08 just a week earlier a 10.5% increase in value. A CBL market survey on September 9 confirmed the trend, showing rates of L$182.94 (buying) and L$184.94 (selling) per U.S. dollar.
The currency strength is attributed to several factors which includes:
Tight monetary policy since April 2025, with a 17.25% policy rate, Sterilization of over L$13 billion to stabilize the foreign exchange market, Strong remittance inflows totaling US$425.9 million in the first half of 2025, Expanding economic activity outside Monrovia due to improved road connectivity
Inflation has also dropped significantly from 13.1% in February to 7.4% in July with further declines projected. Structural reforms, such as improved road access, expanded energy supply, and higher agricultural productivity, are helping reduce production and transportation costs.
Other contributing factors to growing confidence include reduced fiscal deficits and the use of the Pan-African Payment and Settlement System (PAPSS) to facilitate regional trade.
CBL Executive Governor Henry F. Saamoi reiterated the Bank’s strong commitment to maintaining financial and monetary stability:
“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.”
He urged the public to avoid panic-driven behavior or hoarding, which can cause unnecessary pressure on the market. The Central Bank will continue monitoring the foreign exchange market and providing regular updates.
The CBL reaffirmed its dedication to sustaining macroeconomic stability, ensuring sufficient liquidity, and reinforcing confidence in the Liberian dollar.