Monrovia, Liberia: The Central Bank of Liberia (CBL) has assured the public that there is no shortage of Liberian dollars (LRD) in the financial system, dismissing recent concerns about scarcity as unfounded.

According to the Bank, commercial institutions are well-positioned to meet customer demand for withdrawals, salaries, settlements, and private sector transactions. As of September 3, 2025, commercial banks held L$1.65 billion in vault cash balances, with excess reserves nearly doubling to L$2.02 billion compared to the same period in 2024. The CBL itself also maintains strong reserves to back the system if necessary.

“These rumors are based on speculation, hoarding, and misinterpretation,” the Bank said in a statement. “They do not reflect the true liquidity conditions, which remain stable and resilient.”

At the same time, the Liberian dollar has seen a sharp rise in value against the United States dollar. On September 8, the exchange rate stood at about L$180.00 to US$1.00 (buying), up fromL$201.08 to US$1.00 at the end of August, an appreciation of more than 10 percent in just one week. A CBL survey on September 9 confirmed the upward trend, with rates recorded at L$182.94 (buying) and L$184.94 (selling).

The Bank attributed the currency’s strong performance to a mix of policy measures and structural improvements. Since April 2025, the CBL has kept the monetary policy rate at 17.25 percent and sterilized over L$13 billion to stabilize the foreign exchange market. This has been supported by strong remittance inflows of US$425.9 million in the first half of the year, expanded economic activities outside Monrovia through improved road connectivity, and a steady decline in inflation from 13.1 percent in Februaryto 7.4 percent in July.

Other structural gains, including better road networks, expanded domestic energy, higher agricultural productivity, reduced fiscal deficit, and the adoption of the Pan-African Payment and Settlement System (PAPSS) for cross-border trade, are also easing inflationary pressures and boosting market confidence.

Executive Governor Henry F. Saamoi stressed that the CBL remains committed to safeguarding monetary and financial 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. The Central Bank remains vigilant in safeguarding exchange rate stability, ensuring liquidity, and building confidence in the economy,” Saamoi said.

The Bank urged the public to remain calm and avoid panic withdrawals or hoarding, which it said only create unnecessary pressure on the system.

The Central Bank reaffirmed its commitment to maintaining liquidity across the banking sector, monitoring the foreign exchange market, and providing timely updates to keep the public informed.

Written By: Jerry Laynumah Siakor

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