Africa-Press – Liberia. As the Liberian dollar appears to appreciate against the U.S. dollar, frustrations continue to mount among ordinary Liberians who say that the gains in exchange rate are not translating into real relief on the ground.
Despite the Central Bank of Liberia’s (CBL) repeated assurances that the financial system has sufficient liquidity in Liberian dollars, citizens are complaining of cash scarcity and persistently high prices for basic goods and services.
The disconnect between official statements and street-level realities is fueling public anxiety and mistrust, especially among the business community and low-income households who depend heavily on cash-based transactions.
“People say that the US rate has dropped, it has not dropped. The people hiding the Liberian Dollars. We want the US to really come down. Even when you go do mobile money transaction, it’s hard to get Liberian dollars except when you are sending. Most of the money changers will tell you that they are only sending simply because they don’t want to give the Liberian dollars out,” lamented Martha Foko, a local businesswoman.
Her sentiment reflects the prevailing view among many petty traders and everyday citizens who say the appreciation of the local currency is not helping them economically.
The CBL, however, maintains a different narrative. On September 9, 2025, the Bank published a statement reaffirming that there is no shortage of local currency. “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,” the statement reads.
CBL further stated that as of September 3, 2025, commercial banks held L$1.65 billion in vault cash balances—an amount the Bank deems sufficient to serve customer withdrawals and payments.
In addition, the CBL reported having strong reserves to intervene when necessary. “Banks’ excess reserves have nearly doubled to L$2.02 billion compared to September 2024, underscoring strong liquidity,” the CBL added.
Despite these reassurances, market dynamics seem to tell a different story. On the streets of Monrovia and across local markets, citizens say they are unable to cash out Liberian dollars, even when receiving mobile money transfers. Some attribute this to deliberate hoarding by money changers and merchants who are allegedly stockpiling local currency to influence rates and prices.
Nancy Tamba, a resident of Logan Town, shared her experience: “My daughter school fee was send to me but I can’t do withdrawals. Everywhere I go no money. The situation is very serious. My daughter is going to miss class because of the scarcity of Liberian dollar.”
Others, like Jacob Brown, report losing money in conversion due to discrepancies between official and street exchange rates. “Don’t know what is happening. The rate is coming down but commodities prices are not coming down,” Brown said.
He noted that although he exchanged his U.S. dollars at a rate of L$160, basic goods such as scratch cards still cost L$200—prices that reflect no change in market conditions.
The Central Bank, in its communication, blamed the perceived scarcity on “speculation, hoarding, and misinterpretation” of market conditions. It insisted these concerns “do not reflect Liberia’s actual Liberian dollar financial conditions, which remain stable and resilient.”
But Nimley Sayeh, President of the National Association of Foreign Exchange Bureaux of Liberia (NAFEBOL), provided a sobering counter-narrative. Speaking to FrontPage Africa, Sayeh pointed to structural and regulatory issues as key drivers of the current scarcity.
“It has to do with bridge in security, lack of proper regulation, it has to do with the business people and that of the Commerce Ministry,” Sayeh said.
According to him, many businesses are operating outside the formal banking system, further complicating the Central Bank’s control over money flows. “Which one of the country in Africa that a store doesn’t have a bank account in their country, businesses are not registered,” he added.
Sayeh went further to describe the situation as an act of economic sabotage. “All of these things are ways in which people investigate and monitor financial activity. Who monitor the people who are doing business. Who monitor their financial float. The whole thing is a complete economy sabotage by our own people and our own government,” he said.
He also blamed business people for hoarding Liberian dollars. “There are more money in the market and this situation most time happens in the second year of every government, it happens in the past regime but this one is very serious. The past regime took action quickly. They listened to stakeholders and they slove the problem. So we need to found a collaborating force to slove this problem because it is a whole cartels,” Sayeh warned.
Meanwhile, the Ministry of Commerce and Industry is urging compliance from businesses and has pledged to take action against price manipulation. “The government just announced massive reduction in the prices of some of these basic commodities. So, to march it up with our role as a sector institution, the Minister on her Facebook page made a public statement that we will be all out in the field. She urged the inspectorate to work,” said Jacob Parley, the Ministry’s Communications Director.
Recent exchange rate data confirms a sharp appreciation of the Liberian dollar in recent weeks. On September 8, the exchange rate was about L$180.00 to US$1.00 (buying), compared to L$201.08 to US$1.00 at the end of August—a 10.5% appreciation in just over a week. A CBL market survey on September 9 showed L$182.94 (buying) and L$184.94 (selling). The latest rate as of the time of publication was the September 10, 2025: L$176.9513 to US$1.00 (buying) and L$178.9114 to US$1.00 (selling).
CBL attributes this to its tight monetary policy, including maintaining a 17.25% policy rate and sterilizing over L$13 billion to absorb excess liquidity. Other factors include stronger remittance inflows—US$425.9 million in the first half of 2025—expanded road connectivity boosting rural economic activity, and a decline in inflation from 13.1% in February to 7.4% in July.
The Bank added that structural changes like improved energy access, better road infrastructure, gains in agriculture, and the use of the Pan-African Payment and Settlement System (PAPSS) for cross-border trade have helped reinforce confidence in the Liberian dollar.
CBL Executive Governor Henry F. Saamoi reaffirmed this view: “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.”
Despite these statements, the gap between policy and reality persists. With the exchange rate improving but prices holding firm, and mobile money users struggling to cash out, many Liberians continue to feel that the system favors the powerful while burdening the average citizen.
As the CBL urges citizens not to hoard or panic, and ministries promise enforcement, many are simply waiting for their lives to reflect the economic “stability” being touted in press releases.
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