MONROVIA — The Central Bank of Liberia (CBL) says the country’s exchange rate has shown modest but notable stability in recent months, hovering around L$199.6 to US$1 between March and May 2025. The CBL attributes this trend to prudent liquidity management and a broader strategy to preserve macroeconomic stability.
In a statement released on Monday, the Bank said Liberia’s exchange rate performance stands favorably in comparison to several of its ECOWAS counterparts. The movement of the Liberian dollar remains within the regional convergence threshold of plus or minus 10 percent, with no abnormal fluctuations observed.
The Bank reaffirmed its commitment to reducing exchange rate unpredictability and shielding the economy from disorderly market conditions. “The CBL remains committed to preserving macroeconomic stability and will continue to monitor exchange rate developments closely,” the release noted.
As part of its January 2025 policy action aimed at curbing inflation and enhancing stability, the Bank slightly increased its monetary policy rate from 17.0 percent to 17.25 percent. The move, the CBL said, is intended to support price stability while bolstering public confidence in the Liberian dollar.
Also highlighted was the ongoing rollout of the Pan-African Payments and Settlement System (PAPSS), which the CBL described as a cornerstone of efforts to modernize Liberia’s financial infrastructure. PAPSS enables instant, cross-border transactions across African markets, a move expected to further solidify Liberia’s participation in continental trade and payment networks.
The Bank is encouraging the public to invest in its high-yield instruments. “The public is encouraged to take advantage of the higher interest rate on CBL instruments by purchasing CBL Bills to earn stable and attractive returns,” the statement read. The CBL says it currently holds over L$10 billion in domestic investor placements, offering improved returns.
Meanwhile, the central bank issued a stern warning against the rejection of coins during commercial transactions. The advisory specifically addressed market women, petty traders, and filling stations, reminding them that such practices violate the country’s legal tender laws.
“The CBL takes this opportunity to strongly warn the public… against rejecting the coins for transactions. Such actions constitute a violation of Liberian law, and violators shall be penalized accordingly,” the Bank warned.
The rejection of coins has become increasingly common in petty markets and among street vendors, despite being an integral part of the currency structure. Economists say this behavior erodes trust in the currency and hampers day-to-day transactions, especially among low-income earners.
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