MONROVIA – The Central Bank of Liberia (CBL) has reassured the public and market participants that there is no shortage of Liberian dollars in the financial system, dismissing concerns about scarcity as unfounded and fueled by speculation.
In a statement issued on Wednesday, the Bank noted that commercial banks across the country maintain sufficient Liberian dollar liquidity to meet customer demands, including government salaries, settlements, and private sector transactions. According to CBL, as of September 3, 2025, commercial banks held L$1.65 billion in vault cash balances, enough to cover withdrawals and payments, while the Bank itself maintains strong reserves to support the system if needed.
“Banks’ excess reserves have nearly doubled to L$2.02 billion compared to September 2024, underscoring strong liquidity,” the Central Bank said. “Rumors of scarcity are isolated, arising from speculation, hoarding, and misinterpretation. They do not reflect Liberia’s actual financial conditions, which remain stable and resilient.”
The CBL’s announcement comes amid a sharp appreciation of the Liberian dollar 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 at the end of August, a 10.5 percent appreciation in just one week. A market survey conducted by the Bank on September 9 confirmed the trend, recording rates of L$182.94 to US$1.00 (buying) and L$184.94 to US$1.00 (selling).
The Bank attributed this improvement to both economic and structural factors, including its tight monetary stance since April, which has kept the Monetary Policy Rate at 17.25 percent and sterilized more than L$13 billion to stabilize the market. Strengthened remittance inflows of US$425.9 million in the first half of the year and rising economic activity outside Monrovia, driven by improved road connectivity, were also cited as key contributors.
Inflation has dropped from 13.1 percent in February 2025 to 7.4 percent in July, with further declines projected in the coming months. Structural changes, such as better road networks reducing transport costs, expanded energy access lowering production expenses, and agricultural productivity gains improving food supply, have helped ease inflationary pressures.
Executive Governor Henry F. Saamoi reinforced the Bank’s commitment to stability, saying: “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 urged the public to remain calm and avoid hoarding Liberian dollars, stressing that panic transactions only worsen market distortions. It reaffirmed its pledge to sustain macroeconomic stability, maintain adequate liquidity, and strengthen confidence in the Liberian dollar.
